Fractal Pattern in SP500 Suggests Strong Upside Potential

The current Weekly chart formation and break higher appears to be a fractal pattern of the post election Monthly chart in 2016.

SPX Weekly

SPX Monthly November 2016

Obviously there are differences in exact pattern but the overall structure is quite similar.

Both consolidation areas are roughly 20 bars, broke out of a flat base resistance, and pulled back to retest the breakout level + 20 SMA before rotating higher.

From this formation we know prices can run significantly as we saw in 2017 following this November breakout. I am not ruling out the possibility of a strong push higher from the current Weekly basis pattern either.

Monthly patterns are more explosive than Weekly patterns, but we could still see significant upside from here provided price holds last week's low and rotation point at 2,690