Below looks at the S&P 500 over the past couple of years on a weekly closing basis. The S&P hit a key level around 6-weeks ago and continues to “back off!”

The Power of the Pattern applied Fibonacci to the 2016 “weekly closing highs and lows” at each (1), then applied the 161% extension level to them.

SPY hit the 161% extension level around 6 weeks ago, at the 238 level and has proceeded to create a series of lower highs, while breaking a steep rising support line at (2). This line was created off the lows at the time of the election.

Since hitting this key resistance level, the S&P 500 has created a series of “bearish reversal patterns/bearish wicks,” three out of the past 6-weeks!

Until the S&P can take out the 161% level, it comes into play as the 800 pound resistance zone.