What I digg concerning this video is how Thermal1 talks about how we've had roughly nine downward days in a row on the S&P 500 and this stock market is right and proper for an oversold bounce. That is the same thing I talked about in my most recent technical analysis video on SPY.
He talks about how the discussion heads on TV and stock analysts all over are telling us we are right and proper for a spring back. Thermal1 reasons that with everybody telling us we are due for a bounce, we are possibly going to have one. Thermal1 then traces out a pathway on the S&P 500 stock chart that he thinks we might see next week.
I have used my own stock market charting software to sketch a good clean image tracing out the anticipated move both I and Thermal1 see taking place if we do get a spring back.
This 1040 to 1050 resistance area is formed from the rule in technical analysis that says preceding support becomes resistance in a downtrend.
For a downside mark on the S&P 500, 3 stock market analysts have the same opinion on a 50% to 61.8% Fibonacci retracement, myself, Adam, and Thermal1. Although Thermal1 talks about the Fibonacci retracements as applied to SPY, on the S&P 500 the 50% retracement level is 949 and the 61.8% retracement level is 885.
Therefore in summary provided we do get a spring back next week which is a genuine chance as we've had just about 9 repeated downward days, the bounce could take us back up to 1050 resistance, and to finish the next down leg will take us down to the 949 to 885 Fibonacci retracement target zone.
Below is the video from Thermal1 that I urge you look at.
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