#ES_F, weekly
ES has been 'struggling' with the 50% level for months now… But even if it breaks out and moves above the 4200 level, it is still too early to call this a new bull market.
In my view, the bull market will be confirmed only when ES moves above the 61.8% level. pic.twitter.com/PcsDRTkkDW
— Yuriy Matso (@yuriymatso) April 20, 2023
Today’s Chart of the Day was shared by Yuriy Matso (@yuriymatso). The S&P 500 continues to struggle at 4200. The index has made several attempts to clear this hurdle over the past year, but it’s proving to be a brick wall of resistance. This level also coincides with the 50% retracement of the 2022 decline. Price briefly reclaimed it last August, but that move ended up being a failed breakout. Yuriy points out that the bulls won’t be out of the woods until the August highs are surpassed. The August highs are around 4320, coinciding with the 61.8% Fibonacci retracement of the 2022 decline. Last Summer was a notable exception, but it’s rare to see a bear market continue after retracing more than 50% of its decline.