In January 2022 when the market started dropping I highlighted a few support zones where the market could potentially hold. I have highlighted these in the screenshot below. I primarily used fibonacci rectracements and projections and moving averages to come up with these zones. My question is once price approaches these key support levels is there any technical tool/technique that I can use to confirm if these areas of support will hold? I am a newbie here and I apologize if I have not followed some of the rules while making this post. Any help would be much appreciated.
They look like all time highs so you’re pretty much on unchartered territory. What you can do is look at prior cyclical downturns and identify market sectors that all turned down before the S&P dipped. That should give you an idea of an imminent downturn. Historically gains in utilities, healthcare & consumer staples have been a common factor.
Bond prices are gathering steam & the expected FED hikes have a long term bearish bias atm. This also affects interest bearing sectors like high dividend yield stocks and the housing market (I think REITS are affected too). Conversely if the uptrend is likely to continue there should be money going into sectors like consumer discretionaries. You’ll probably have to DYOR.