SPX Daily Chart Fibonacci Retracements Megaphone Pattern

SPX daily chart shows the Fibonacci retracements with the blue lines. Price exactly touched the 62% Fib four days ago.  Note the price action along the 50% Fib.  The 50-day MA is 1417.63 and sloping downward, moving parallel to the downward-sloping pink trend line.  The two pink lines show the megaphone pattern in play.  Price moves are expanding as time moves along. Right now price is parked exactly at the top rail at 1414.

The three resistance levels mentioned will gauge the upside bullish strength.  A break of 1414 would create a test of the 50-day at 1418, if that is overtaken then the 62% Fib at 1422-1424 is in play and if that gives way, the bulls will be headed far higher. The bears must stop the upside action asap and that would start with holding the 1414 resistance.  Perhaps the Monthly Jobs Report at 8:30 AM will choose the winner before the session begins. 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.

Note Added 12/8/12 at 6:00 AM:  The SPX closed at 1418 for the week, a hair above the 50-day MA, so market bulls are happy. Monday and Tuesday are key since price must now bounce and head higher using the 50-day as support, or, collapse in failure.