Tuesday, April 27, 2010

61.8 Percent Retracement of S&P and DOW Industrials

Both the Dow and S&P 500 have reached a 61.8 percent retracement of the 2007-2009 bear campaign. The interaction with the exponential moving averages and the last minor pivots will reveal much about the future performance of both indexes.

21 day ema: 1192.35 -- 11014.14
55 day ema: 1163.74 -- 10784.19
200 day ema: 1093.63 -- 10177.95
last week's low: 1183.68 --- 10973.92

The fact that the S&P has reached the 61.8 level coincident with the 50 percent triangulation shown below suggests that resistance may be experienced at this price level and time frame.


tomterrific said...

You are absolutely right on your post correcting me on Trader Narrative. The Barron's cover bothered me since I saw it and it would be poetic justice if they called the Top with their cover of a Bear being run over by a Bus just like they called a bottom with a Bull splatting in March of 09. In any event the cover got me to thinking and I checked the Fib level on the Dow and with just a glance at the other charts or the ETF representing them concluded all were over the Fib level. Haste makes waste.

Fibocycle said...

The markets often don't make things easy and often ignore price harmonics when analyzed exclusively. I like to combine both price and time in order to ascertain harmonic market junctures. Tonight's posting shows how I attempt to do this using market triangulation.