The S&P 500 Index Weekly And The 9.618 Fibonacci ExtensionHello Traders,
This is the weekly view of my monthly chart. Check Related Ideas below.
I want to share my view on the S&P 500 Index.
I have shown the monthly chart which goes back to the start of the S&P Index as far as I know. From here I have used Elliot Wave theory to mark primary wave 1/2 around the 1930's crash.
After the Great Depression to "stimulate" the economy the government first cut dollar ties to gold. Then in 1971 the dollar left the gold standard.
The market went on a massive bull run for 67 years with gains approximating 32,500%
This bull run topped in 2000 which was the year of the dot com bubble. I have marked that peak as the top of primary wave 3. The market then went through a brutal ABC correction with the dot com crash bottoming in 2002. Then when things seemed to be on the way back up the housing market crisis happened in 2007.
This series of events was devastating for the economy and is widely considered one of the worst financial disasters since 1930. The economy has not recovered properly since.
I have put a series of fib sets on this chart which are quite interesting. When price approaches the 8.618 + range this is usually a danger zone.
Price is approaching the 9.618 extension on the black impulse set so I am expecting something to happen here. For a wave 5 this might look a bit small but lets see.
If price does push past that fib set then the bear wall is next resistance.
