The picture shown the fib retracement levels from the high 3398.2 (20 Feb 2020) to the low 2179.3 (23 Mar 2020) and a rebound to 3233.2, we can see the fast recovery of the stock market, especially the technology sector. But how will it goes? As we can see in the picture, after the index reached another higher level of fib retracement level, it always experienced a large-scale pullbacks.
In ascending chronological orders, from 2641.1 to 2430.5 (-7.97%), from 2890.6 to 2723.4 (-5.78%), from 2972.4 to 2779.2 (-6.50%), from 2953.4 to 2765.8 (-6.35%), from 3233.2 to 2936.0 (-9.19%). It happened 2 times of pullbacks when the index hit the 61.8% level and the latest one happened when the index hit the 78.6% level with a huge overshoot of nearly 100 points, therefore the pullback was the greatest comparing to those happened before (-9.19%). According to the chart pattern, it is possible to see the 2nd pullback of the index when it reached the 78.6% level. The index hit a level of 3194.3 yesterday and experienced a resistance near the 3200 round level. if it is the short term peak, we can foresee a pullback to the range 2900-3000, which is also the support near the 61.8% level. Unless the 2900 support level is broken, the mid-term upward trend of SPX500 is still intact. But in the short-term, the index has a large chance to experience this pullback until it can gain momentum to reach a higher level.
In ascending chronological orders, from 2641.1 to 2430.5 (-7.97%), from 2890.6 to 2723.4 (-5.78%), from 2972.4 to 2779.2 (-6.50%), from 2953.4 to 2765.8 (-6.35%), from 3233.2 to 2936.0 (-9.19%). It happened 2 times of pullbacks when the index hit the 61.8% level and the latest one happened when the index hit the 78.6% level with a huge overshoot of nearly 100 points, therefore the pullback was the greatest comparing to those happened before (-9.19%). According to the chart pattern, it is possible to see the 2nd pullback of the index when it reached the 78.6% level. The index hit a level of 3194.3 yesterday and experienced a resistance near the 3200 round level. if it is the short term peak, we can foresee a pullback to the range 2900-3000, which is also the support near the 61.8% level. Unless the 2900 support level is broken, the mid-term upward trend of SPX500 is still intact. But in the short-term, the index has a large chance to experience this pullback until it can gain momentum to reach a higher level.