One of the broadest stock market indices is flashing a warning sign. Is any one watching?
Joe Friday is.
Today’s chart takes a long-term monthly view of the and highlights why this stock market index is at risk of rolling over.
“The facts, Ma’am. Just the facts.”
NYSE Monthly Chart
As you can see, the NYSE spent the past 35 years in a rising trend channel marked by each (A). And more recently, price reached the top of that channel (resistance) and began to turn lower.
But this area turned out to be more than just channel resistance. It’s a major 1.618 applied Fibonacci extension level as well (when using 2016 lows and 2020 highs). And as the NYSE price hit this 1.618 Fibonacci level, the MACD (momentum) indicator hit some of its loftiest readings on record… and began to turn lower.
So with price and momentum turning lower from the top of a 35-year channel, it’s probably wise for investors to listen to Joe Friday.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Comments are closed, but trackbacks and pingbacks are open.