Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

S&P Building A Base To Spring Higher Off Of?

|About: SPDR S&P 500 Trust ETF (SPY)

Is the S&P building a base to spring higher off of? Could be! This chart looks at the S&P 500, where Fibonacci was applied to the 2007 highs and 2009 lows.

The S&P traded sideways just below the 161% Fibonacci extension level for nearly 20-months. In hindsight, it was building a base to push higher from. Once it broke above the 161% level, it rallied nearly 50% in the year.

The S&P has traded nearly sideways below the 261% extension level over the past 15-months. Is the S&P building a base to spring higher off of? Possible.

Until broken, the 261% extension level comes into play as strong resistance. If it can take out the 261% level, the action over the past 15-months could be a base to push higher from.

Keep a close eye on the 261% resistance level, as this line in the sand could have a big impact on where the S&P is months from now!

Fundamentals tell you what to buy. Our chart patterns show when to buy! Employ the Power of the Pattern

See sample of our most popular research reports here

Receive my free research to your inbox, immediately after it's posted to the blog


Call us Toll free 877-721-7217 International 714-941-9381