Monday, May 27, 2013
SPX Daily Chart Fibonacci Retracements
The four-week up move was a bear killer. The move from 1538 to 1687 is obscene, 150 handles in four weeks (6 handles of upside per trading day for one-month straight!!) courtesy of the central banker easing policies. The Fed and BOJ are the markets. The blue Fibonacci retracements are based on the closing low and high for the rally while the red Fib's are based on the intraday low and intraday high. Note that price has not tested either 32% Fib which is typically the bare minimum retracement that would be expected. The 32% Fib's are 1629 (red) and 1620 (blue). The 1620 area jives with the 1618 horizontal support. The 1629 is near the strong 1626-1627 support forming a confluence at 1626-1629 as a target support zone. Based on the 32% Fib retracement, a price move lower to the 1618-1629 area is a reasonable expectation. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.