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The NYSE made an important high five years ago this month and then proceeded to waterfall in price. Now the rally in the NYSE has it back to that important high, in the same month, five years later.
At the same time several key emotional highs and lows over the past few years have formed resistance lines that meet at the same price as the potential double top.
A breakout of these resistance lines would make this chart worthless. If the market peaks here and turns down, it would be hard to put a value on what this price point could mean for the broad markets.
Why could this pattern take on a little more importance? See below.
The great chart above reflects that margin debt is reaching levels where the S&P 500 ended up creating two major peaks over the past 13-years. The high debt situation could increase the odds of how important this technical pattern could be.
Is ole Scooby concerned about a "Danger Zone" when he shouldn't be? Stay tuned!
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