SPX Tech analysis by Simon Kazinsky on 20:35 February 28, 2017 EST
The relentless ascent of the Dow Jones Composite index may pause or reverse soon if we take into account its monthly chart.
At present stocks are in a runaway panic buy trend ignited after the US election in November and it is difficult to determine when and where it will stop.
However, if I had to choose a number that would be 7,314. Drawing a fibo ratio between that figure and the lows of 2009 draw an interesting picture where the main ratios (38.2%,50%,61.8%) coincide close to the pip with major lows and tops.
The good news is that we will see real soon how the index deals with this important level. It is way too premature to switch bias but a rejection at this level can be a signal to start taking profits from buy trades and, if you are neutral, time to start finding short term moving averages that can act as RESISTANCE if price action heads lower in order to start accumulating shorts.
But, at present, it is wait and see.