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Double Bottom test of June Low 220925

The S&P 500 is currently forming a double bottom pattern, testing the June 16th low.

NOTE- in a previous post, I stated:  “…the odds of a drop all the way back down to the low is HIGHLY unlikely.”  That was based on the 50% retracement which had taken place in August.

Three quick points-

  1. “HIGHLY unlikely” isn’t DEFINITELY.
  2. So far, the S&P 500 is testing the closing low from June, but hasn’t yet reached or exceeded that level. 
  3. A bounce from the retest is a Bullish signal.

I don’t have time to discuss the attached chart. It’s a jumble of concepts, but I wanted to get the graphic out there.  Tune into the next episode of the Wealthsteading podcast, where I’ll talk about the significance of these lower boundaries.

Spoiler alert…for now, I still believe it’s HIGHLY likely that the Market will “relief rally” into year end.  I don’t think the major impact from the brewing Global Recession hits until 2023.

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