The declines of late have the Dow testing support and support is support until broken. This support line could be the bottom of a bearish descending triangle pattern.
While 25-year resistance is being tested, momentum is at levels seldom seen in the past quarter-century. In fact, rates were closer to highs than lows when momentum was this high in the past.
Over the past 15-years, the Nasdaq100/S&P500 ratio has spent the majority of the time inside of rising channel (1), highlighting that tech has been in a leadership role for years and years. The ratio is now testing the top of this rising channel at (2) this month.
A close-up view of 10 and 30 yr interest rates shows both hitting chart channel resistance and are now attempting “rolling over” at (2) in the charts below
The highs this year in the index could be the top of a bullish ascending triangle pattern. Two-thirds of the time, ascending triangle patterns breakout to the upside. The chart on the right in the 2pack below....
Message back in late December: “We are now at the 261.8 Fibonacci price level. Will this level bring market turbulence… sideways, lower, etc… ? Stay tuned.”
