Monday, April 6, 2009

Reversal probability zones for the S&P 500 based on Fibonacci retracement clusters

I've mentioned Fibonacci clusters and probability reversal zones for the S&P 500 index and Dow Jones Industrial Average. While I haven't marked ALL of the key Fibonacci retracement levels onto this chart, many of them are on here. The key point of posting this is to show in graphical form where those zones are. The past week or so, we have tested the lower one I marked with an oval. Assuming the market can get higher, then it's got the next one to contend with. That higher one focuses a lot on the 884 SPX level I've mentioned.

In this chart I've also included the volume-by-price bars so you can see that there's even more overhead supply ("overhang") resistance getting up to the higher zone.

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