It is certainly a possibility. Let’s take another look at the 38.2% retracement level on the S&P500:
(2yr chart)
(9mo chart)
Looking at the 9mo chart it is “make it” or “break it” for the market. The 38.2% retracement level is a significant level to watch, and on strength I am still a buyer of this market. I love the consolidation right below the 38.2% level, it leads me to believe it’s only a matter of time before we bust through that level.
Still bullish.
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