An Important 61.8% Fibonacci Test Will Occur this Week

By: Marty Chenard | Mon, Nov 8, 2010
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For Fibonacci followers, the S&P 500 is a smidgen away from a momentous event.

What is the event?

The event is that the S&P 500 is VERY close to reaching and testing its Fibonacci 61.8% level.

On today's chart, take a look at this year's action around the 50% and 38.2% levels and you will see why many investors pay attention to Fibonacci numbers.

In June and August, the S&P tested the Fibonacci 50% levels and pulled back. It wasn't until its 3rd. attempt in September, that it finally made it above the 50% Fibonacci level.

Also note how the S&P 500 failed to the downside in April, and then kept falling until July 1st.

What was significant about July 1st.?

A quick look at the chart gives you the answer ... on July 1st, the S&P 500 hit and tested its 38.2% Fibonacci support level ... where it held that day and ended up higher at the close. It moved up from there to ... you guessed it ... the 50% Fibonacci level.

S&P500 61.8% Fibonacci Retracement

 


 

Marty Chenard

Author: Marty Chenard

Marty Chenard
StockTiming.com
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Marty Chenard is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools and stock market models. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker.

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