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33 days ago I was honored to do an interview with Phil Pearlman, executive editor of Stocktwits (listen here). A couple of the key points in the interview were…
(1) Follow the price action of the worlds hottest stock market…
(2) Investor sentiment did not appear to be at peak levels and the market had more room to the upside…
What took place since the interview? The S&P 500 was up 6% and the Nikkei gained 17% more. Well that is now the past….
The top chart reflects that the hottest stock market in the world rallied to its 23% Fibonacci retracement of the 2007-2009 financial crisis decline and so far this week created a “Huge Engulfing Bearish Reversal Wick” at this key Fib level.
I shared 33 days ago that what that investors should pay close attention to the hottest stock market in the world and still feel the same today. One day or week does not make a trend, yet the majority of the time a bearish reversal wick at Fibonacci takes place it usually suggests a peak in price is at hand and it is something to pay very close attention too!!!
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