Was Tesla the Canary in the Coal Mine for the Stock Market? After the SEC went after Elon Musk, we saw the stock drop 30%, but the chart already showed that a big reversal was in store for Tesla with a bearish divergence and a swing high failure on the RSI on the daily chart as well as the weekly chart.
We also see that magical Canfield Fibonacci level show up at 17.944 as the top for Tesla.
I debuted these fibonacci extensions in my last post here if you'd like to learn more about them and how I calculated them:
This was the same level that Gold and Bitcoin were rejected at.
You will see that Tesla hit the 17.944 Fibonacci extension and formed a massive bearish divergence and a swing high failure that we’ve seen on the Dow Jones, Amazon, Apple and many of the other charts I highlighted.
AMAZON CURRENTLY FACING THE 17.944 with the same bearish divergence.
Dow Jones facing the same bearish divergence.
After this bearish divergence, Tesla had one more run back to the 17.944 before getting rejected and is currently retracing to the 11.09 Fibonacci extension.
We saw a 50% fall from it’s all time high around $383 for a bounce around $194.
Do the other charts and indexes I highlighted have the same fate in store?
Monday will be a big day for stocks as they’ve already had one of the worst downward slides since May of this year.
Bitcoin is still in undecided territory and I have highlighted both a bearish and a bullish scenario.
Let me know what you guys think of the new Canfield Fibonacci levels and if they're helping you with your analysis.
Monday will be a very interesting day...
