An Important 61.8% Fibonacci Test Will Occur this Week
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.