Courtesy of Chris Kimble.
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Sometimes getting “Picky about small details at tops and bottoms” can be of huge benefit to a portfolio.
S&P 500 continues to test overhead Fibonacci resistance. Last summer (week ending 7/8/2011) while dealing with the 23% Fib level, the 500 index on a weekly basis, created a “weekly chart pattern” that soon saw the 500 index decline almost 20% in a matter of two weeks!
Last week the 500 created a similar weekly pattern at (2) as it did the week of 7/8/2011, up against falling resistance line (1) and the same pattern as it did on 10/12/2007!
Are the points the “Power of the Pattern” brings up “True But Useless” pieces of information? Humbly I don’t know, yet I do feel it can be worth being very picky from time to time!
