Chris Kimble, a 30-year+ market technician and student of Sir John Templeton, has had his eye on a possible head-and-shoulders in the S&P 500. See his Just a Pinch More from June 11th. Today Chris is seeing double — perhaps as in double trouble. How often do you find two different Fibonacci retracement levels that line up within a fraction of a percent of each other?
Chris comments: Especially in bear market rallies, Fibonacci retracements become KEY levels to watch for trend reversals. How often could TWO important Fib 50% retracement levels come into play on the same day?
The 500 index hit both 50% levels today and on a very short-term basis, the Fib levels held. Did the 500 index change its stripes and change trend today at Fib resistance? Let's see what this animal does from here going forward.
The first day of summer may be a date to mark on your calendar.
