Retreat After 50% Rebound
S&P 500′s Retreat After 50% Rebound Sends Bearish Signal to Chart Watchers. I have been watching this and I must say I was not surprised to see this sort of action today. The 50% Fibonacci line was hit in the pre open and then the head fake up, that tricked alot of bulls…then KERPLUNK!!! down she goes. Today there was a lot of talk about the new developments suggested that Beijing may allow the yuan to be revalued, while this did spark a bit of a rally it was short lived. The bears came pouncing in on a feeding frenzy at the zoo and and by the end of the day, the S&P 500 was down about 20 points.
Have a look at whip-sawish action we have seen over the last 24 hours. Make me think the bears have an argument at least for a few days. The bearish engulfing pattern that has quite clearly set up in the charts is normally a warning sign that there are more red down days that could follow. So we will wait with keen interest to see what happens.
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