ESM2021. Reversal crystal formed off .5 reaction.S&P looks like it will be reversing. By that I mean the recent bottom may have revealed itself.
Bulls will worry about the previous price consolidation that it will be encountering shortly, but there are a lot of good bullish elements to suggest that they will power through.
The dip and recovery at the .5 level on the fib two times in a row should be satisfying the longs as well as the profit takers. If things remain in balance (which can be a big 'if') we can predict that a further impulse is on the way.
I don't see much weakness in the market. You could use the story-telling method. People might not be certain that the stock market can continue bullishly with Biden instead of Trump. So far, this narrative has been disproven. Based solely on the evidence available from the chart it seems like a healthy bullish market.
My worst case scenario is that we see another low before the reversal.
If you are looking to buy and hold for long periods of time, like how the people with enormous holdings are doing, you would think what just happened in the markets is a gift from god, and you would probably be buying aggressively. I think that's exactly what created the reversal pattern.
