{"id":57635,"date":"2022-09-12T10:36:22","date_gmt":"2022-09-12T14:36:22","guid":{"rendered":"https:\/\/www.ino.com\/blog\/?p=57635"},"modified":"2022-09-12T10:37:07","modified_gmt":"2022-09-12T14:37:07","slug":"goldsilver-ratio-shows-sp500-on-the-edge","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2022\/09\/goldsilver-ratio-shows-sp500-on-the-edge\/","title":{"rendered":"Gold\/Silver Ratio Shows S&P 500 Is On The Edge"},"content":{"rendered":"

It\u2019s time to update the S&P 500 index chart<\/a> as it emerged inch-perfect since the last update in July<\/a>. <\/p>\n

\"SP500<\/a>
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Source: TradingView<\/em><\/center><\/small><\/p>\n

To refresh your memory, I kept the main paths untouched and added new crucial highlights. <\/p>\n

The idea of the upcoming breakout of the Falling Wedge pattern (blue converging trendlines) was posted right on time on the Blog as it played out instantly. Indeed, the Bullish Divergence of the RSI indicator with the price chart played out as planned supporting the breakup of the pattern\u2019s resistance. <\/p>\n

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The majority of readers got it right choosing the red path as a primary scenario. The price action has been amazingly accurate in the 61.8% Fibonacci retracement area where the price failed to overcome the barrier and reversed to the downside from the minor top of $4,325 following the red zigzag. <\/p>\n

I added the 52-week simple moving average (purple) to show you how strong the double resistance was at the $4,347-$4,349 level. <\/p>\n

The next support is located in the valley in June at $3,637. <\/p>\n

After the minor top has been established, we can make a calculated projection of the downside target. It is located at $3,143, where the current leg down would travel the same distance as the previous leg down.<\/p>\n

This time, I also added the time target (orange) based on the earlier move, which took 23 bars to unfold. It falls on the end of January 2023. The Fed might take a break lifting the interest rate then. More often than not the time it takes second leg to emerge doesn\u2019t match with the initial move. However, it is still good to have this benchmark.<\/p>\n

The $4,325 mark has turned to be a resistance now as the index could still build a more complex structure to the upside reviving the green path. <\/p>\n

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Are you still betting on the red path?<\/strong><\/p>