Is the market trying to turn from a reasonable area of support? The answer appears to be yes:
- The orange line C is 61.8% (Fibonacci) of the move from RET-A to RET-B. The market held above the orange FIB line near point D.
- The blue trendline E acted as resistance near the red arrow. The same blue trendline acted as support above point D.
- The market’s recent peak allowed us to draw the pink D2 trendline. Stocks held at the bottom of the trend channel or above the second pink line above point D.