Bulls May Have Trouble Tearing Down This Wall Of Resistance!

Chris Kimble

Don’t believe in the power of Fibonacci price levels?

Perhaps this two-pack of stock market charts will change your mind.

Back in late December, I warned that we were approaching the 261.8 Fibonacci resistance level on the Dow Jones Industrials:

“We are now at the 261.8 Fibonacci price level.  Will this level bring market turbulence… sideways, lower, etc… ?  Stay tuned.”

So what happened after hitting this level?  Well, all kinds of win streaks ended.  Market volatility picked up and investors saw the quickest 10% decline in history from all-time highs.  Will this become a “wall of resistance”.

The exact same thing occurred on the S&P 500 chart further below.  Coincidence?

Once this level was hit, both the Dow Jones and S&P 500 produced “hangman” candle patterns the following month (February).

Yes, bulls may have trouble tearing down this wall of resistance!

Dow Jones Industrials – 261.8 Fibonacci “Wall”

dow jones industrials 261 fibonacci price resistance market top chart_year 2018

 

S&P 500 – 261.8 Fibonacci “Wall”

s&p 500 stock market top 261 fibonacci price resistance chart_year 2018

 

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

 

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