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One of many broadest inventory market indices is flashing a warning signal. Is anybody watching?
Joe Friday is.
Right this moment’s chart takes a long-term “month-to-month” view of the New York Inventory Change (NYSE) and highlights why this inventory market index is susceptible to rolling over.
“The info, Ma’am. Simply the info.”
As you may see, the NYSE spent the previous 35 years in a rising development channel marked by every (A). And extra not too long ago, value reached the highest of that channel (resistance) and started to show decrease.
However this space turned out to be extra than simply channel resistance… it’s a significant 1.618 utilized Fibonacci extension stage as properly (when utilizing 2016 lows and 2020 highs). And because the NYSE value hit this 1.618 Fibonacci stage, the MACD (momentum) indicator hit a few of its loftiest readings on report… and started to show decrease.
So with value and momentum turning decrease from the highest of a 35-year channel, it’s in all probability sensible for traders to take heed to Joe Friday! And keep tuned!
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