The S&P 500 is currently forming a double bottom pattern, testing the June 16th low.
NOTE- in a previous post, I stated: “…the odds of a drop all the way back down to the low is HIGHLY unlikely.” That was based on the 50% retracement which had taken place in August.
Three quick points-
- “HIGHLY unlikely” isn’t DEFINITELY.
- So far, the S&P 500 is testing the closing low from June, but hasn’t yet reached or exceeded that level.
- A bounce from the retest is a Bullish signal.
I don’t have time to discuss the attached chart. It’s a jumble of concepts, but I wanted to get the graphic out there. Tune into the next episode of the Wealthsteading podcast, where I’ll talk about the significance of these lower boundaries.
Spoiler alert…for now, I still believe it’s HIGHLY likely that the Market will “relief rally” into year end. I don’t think the major impact from the brewing Global Recession hits until 2023.
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