The S&P 500 gain 10% since it hit a bottom on December 26th. It is now approaching a strong resistance area around 2623 points.
This level is a cluster of points represented by 61.8 % fibo retracement level of the last leg down (Dec 3rd to Dec26th). It is also a projection target of C = A, where A wave formed between Dec 26th and Dec 28th and wave C undergoing from january 3rd. And finally 2623 / 2630 points zone is a former support (base channel) and now became resistance.
If the count is good , there is at least one more leg down before possible resumption of the rally in stocks.
This level is a cluster of points represented by 61.8 % fibo retracement level of the last leg down (Dec 3rd to Dec26th). It is also a projection target of C = A, where A wave formed between Dec 26th and Dec 28th and wave C undergoing from january 3rd. And finally 2623 / 2630 points zone is a former support (base channel) and now became resistance.
If the count is good , there is at least one more leg down before possible resumption of the rally in stocks.