SPX Weekly Chart Fibonacci Retracements

Lots of pundits talking about the Fib retracements the last couple days. Of course, we have been watching this for weeks now.  Note how price came down to place that 1101 low at the 38.2% Fib retracement. Consider this as major support at 1101-1106. If that fails, the 50% Fib would serve as the next target at 1020-1050.

Note the indicators are all weak and bleak, as price moved lower the last three months, so has the indicators indicating lower prices for the weeks and months ahead, with one exception. The stochastics are ovesold and positively diverged, wanting to see a bounce, which yesterday occurred beginning to satisfy the stochastics. Focusing on the shorter term trade, yesterday saw the big bounce that regained the 200 week MA. Note how the 200 week MA plays a key role with price starting in April 2010 where it served as a ceiling, then during Fall 2010, price punched up thru, back kissed, and then took off to the upside as traders drank Chairman Bernanke's QE2 go juice.

Therefore, with futures red this morning, watch the 200 week MA support closely, now at 1152.12. Of course this number will fluctuate since it is a moving average recalculated continuously. The spoo's want to open, at this juncture, with Durable Goods data still an hour away, about ten points lower. Thus, 1162-10=1152. Looks like the fight will be to hold the 200 week MA as support, or not, so keep a close eye on this once the bell rings. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or on any links associated to this site. Consult your financial advisor before making any investment decision.