SPX Weekly Chart - A healthy pullback happened
Last week, when everything was awesome, the analysis about the relevance of the 61% Fibonacci Extension (relative to the 2022 bear market bottom) warned about a pullback, considering the synchrony with other annual resistances reached by $NASDAQ 100(NDX)$ and $DJIA(.DJI)$ .
In 2021, when $S&P 500(.SPX)$ faced the same Fibonacci extension relative to the Covid Crash, there was a period of consolidation (circled in red).
On the other hand, the latest weekly candle shows a hanging man, which in the past has brought also consolidations in their respective top positions (yellow areas).
Since January, I posted the low technical likelihood for $4200 or even $4600 to be visited. Since April I presented the case for $4850 as the very worst case scenario. That support has been moved up already.
A healthy pullback happened, and a technical bottom was posted on Friday 1:30PM, if $5260 is lost next week, the consolidation thesis would be validated. Even if the 61% Fib is not crossed ($5306).
If the validation for a consolidation (losing key levels) comes from NDX, DJI, $E-mini S&P 500 - main 2406(ESmain)$ $E-mini Nasdaq 100 - main 2406(NQmain)$ , the levels were shared on Friday.
Trading is about preparation and risk management.
Have a blessed week. $SPDR S&P 500 ETF Trust(SPY)$ $GLOBAL X DOW 30® COVERED CALL ETF(DJIA)$ $Invesco QQQ(QQQ)$
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