Fibonacci

Fibonacci
Simple, yet effective.
​

Fibonacci's rules are based on Mother Nature and if we believe Friday's action was the beginning of a pullback, then we should first look for prices to pullback to the 23.6% level at 1175. We can see this is a key level (where on the way up) market behavior began to change & consolidate with sideways action over the course of 8 trading days.

If 1175 doesn't hold, then we should test the 38.2% level at 1150. Our last major peak was at 1150 back in mid January. This level is a HUGE technical & physiological level and if it breaks then it could be the start of a long-term corrective Bear market.

One thing is for certain, from the beginning of our existence to today, Mother Nature always wins...

Thanks for your time... Jason
​

 

[JTH]

The Bull side...

 

[anthony]

Good assessment. I like the Bull case personnally. 1150 also represents an EMA approach in addition to a Fib levels approach, as a 5% retracement from the recent top lands right on the 50-day EMA at 1150. There is little case for the beginning of a new bear here, which also firms up the argument for a bounce off 1150.