Back in early March I posted a weekly $SPX chart on twitter that highlighted a weekly rejection candle. The point of the chart was to show that these weekly rejection candles can be of consequences suggesting sizable retraces to come:
Fyi: Weekly rejection candles don’t need to be red in uptrends or particularly large, but can be consequential.$SPX 14% above weekly 100MA. pic.twitter.com/cYFWYXZeOE
— Sven Henrich (@NorthmanTrader) March 4, 2017
$SPX had indeed peaked in early March and has seen weakness since then. So far this weakness has not yet matched previous similar occasions which indicate sizable MA retraces, the mildest form being a move into the weekly 21 MA.
To invalidate the pattern bulls will want to see new highs.
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