Could Presidents Trump’s election rally be in trouble? We could find out very soon, says Joe Friday
This chart looks at the S&P 500 and the VIX index over the past few years. We applied Fibonacci to the price when President Trump was elected and the 2018 highs. The decline from the September highs hit the 61% retracement level, where a reversal and a quick 10% rally has unfolded.
The rally has the S&P testing the underside of its 2018 trading range, it’s 38% retracement level, and falling resistance at (1). While this is taking place the VIX index is testing rising support at (2).
Joe Friday Just The Facts– S&P 500 bulls want to see it break resistance at (1) and the VIX break support at (2). If it does break out at (1); it would send a positive message to the Trump rally.
If the S&P peaks at (1) and turns lower, this would be frustrating news to S&P 500 bulls!