The rally off the December stock market lows has been strong, to say the least. The S&P 500 rallied 25 percent before hitting and testing the 2018 high.
The old highs proved to be formidable resistance and ushered in some volatility in May… and a 5 percent pullback.
In today’s 2-pack, we look at that resistance level – could that be a double top? We can see similar patterns develop on the S&P 500 Index and its Equal Weight counterpart.
Both indexes are testing short-term Fibonacci retracement levels of the recent decline at point (2).
What takes place here after potential double top highs will be important. Stay tuned!