S&P500 Fibonacci Retracement Levels
- Posted by JC Parets
- on November 9th, 2012
When trendlines are broken in markets, Fibonacci analysis gives us levels to watch for potential turning points. Last month we wrote about how the S&P500 was testing the key trendline for the rally off the June lows. Now that we’re clearly broken, here are some level we’re watching (click chart to embiggen):
I think that the mess of up and downs in the market during late June and July should serve as a cushion for this market sell-off. I say ‘should’ because we don’t bottom-fish. We wait for evidence of buyers to come in before making any decisions. No blind knife-catching allowed where I come from.
1346 represents the 61.8% Fibonacci Retracement for the recent rally. The 1370 level is the 50% retracement. We’ll be looking for tradeable rallies to get going from one of these levels. But we’ll be waiting patiently. Let it come to you. I think from our experiences with the Fibonacci numbers, when we see momentum pick up, while prices are still making new lows towards these specific levels, there are usually some nice risk/rewards opportunities that present themselves. So be patient and wait for your pitch. It’ll come.
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He earned the Chartered Market Technician designation (CMT) in 2008 and now actively manages money incorporating Technical Analysis and Behavioral Finance into his practice More
- Aerospace & Defense is Consolidating Nicely
- Is That A Head & Shoulders Pattern In XOP?
- Is JC Penney Setting Up For Another Leg Higher?
- Audio: Q&A on Benzinga Morning Show
- A Look At Energy On Multiple Timeframes
- Yahoo Runs Into Historic Overhead Supply
- Join Me On Benzinga’s PreMarket Prep Show 9/16 9AM ET
- Semiconductors Selloff After Failed Breakout
- Tesla Breaks Down From Traditionally Bullish Pennant
- A Multi-Timeframe Look At Mid-Caps
Archive by Year