Bullish view on SPX now it has broken 161.8%

20 thg 8, 2016

I did expect the SPX to turn at 161.8%, especially as there were four pullbacks to the 127.2% fib. However, now that it has comfortably broken that line at 2133, the price action for the last two years can be considered a bull flag, projecting an eventual top of 2479, double the distance from the 2007 high to the 2009 low.

Don't forget that this is a monthly chart, so not useful for short-term trading. 10% pullbacks can still happe, but 2133 should now provide support.