Sufi's avatar
$83.6m follower assets

The box 📦 - you’re either in it or outside of it.

“Hell is empty and all the devils are here” ~ William Shakespeareimage
Nathan Worden's avatar
Just to get a little more context— the bottom of this fib retracement is the March 2020 lows, and the high is Nov. 2021, correct?

So the box signifies an area that we haven't spent a lot of time in correct? Is the thinking that we may either blow through it (or bounce here?)

@investorinsight and @tecantra are my go-to technical analysis experts here— perhaps they have opinions :)
Preston | Investor Insight's avatar
@sufiofwallst @nathanworden These are well drawn fibs and show a previously area of consolidation which could act as a area of demand for buyers to show up.

In addition, there is a gap to fill on $QQQ around $276 which will most likely fill at some point.

I would expect this to give a short/medium term bounce but nothing more.

We are currently in a stage 4 decline which often leads to a full bell curve formation which could lead us much lower than that box over the next few years.
Sufi's avatar
@nathanworden the bottom and top are March 2020 low and November 2021 high. The box represents a 4 month period that basically went side ways (smart money accumulated here) before breaking out to the upside so if we break into the box, accumulation might happen again or could just be a pause in this desendence phase.

@investorinsight i agree with you - smart money needs to get rid of all the sellers before this bottoms. I think we’re getting close to that point but $AAPL $MSFT and $TSLA need to unwind.
Preston | Investor Insight's avatar
@sufiofwallst I expect a bounce back to the $420s - $430s then more downside where we will see a retest of the $330s level on $SPY over the next 12 months.

Ultimately, if we see a fed induced recession, we could see a retest of $SPY under $300 given all last year was fueled by the fed more than anything.