Do charts have memories? Can prices as far back as 45-years ago impact prices today? I understand if you answered both questions with a resounding no.

In my humble opinion, an important test of these questions comes into play at current prices in the S&P 500 at (1).

This chart looks at the S&P 500 on a quarterly basis since the late 1950s, where Fibonacci was applied to the 1974 lows and the 2000 & 2007 highs. The 261% Fibonacci extension level comes into play at (1), which is the 3,900 level in the S&P.

At the same time, this price test is coming into play, the S&P is testing the top of a 30-year bullish rising channel at (1).

Because a dual breakout test is coming into play at (1),

does it mean that a strong bullish trend has to come to an end? Nope!

 

One this is clear, should the S&P 500 breakout at (1), it sends a strong bullish message!!!

Joe Friday Just The Facts Ma’am; Bulls would receive a short-term caution message if selling would happen to start at the dual breakout test at (1).

 

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past