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Could the 1987 highs and the 2002 lows impact the 100 largest companies in America right now? The above chart ties in two of the most emotional/key turning points in the last 25 years, which could well come into play at this time.
The S&P 100 is now testing a key line, created of the 1987 highs, the 2002 lows and the 2007 highs at (2) in the above chart.
This index made an attempt to break through this unique line two weeks ago and last week did a small reversal. The pattern has a bullish side to up (bullish wick) and also could have created an engulfing bearish pattern.
This funky pattern reflects the key battle that is going on between the traders right now. Since this is a weekly pattern, what this index does over the next few weeks could tell us a ton about the next big move in the S&P 500 and NYSE.