Fibo's Voices

Don't look back
Yesterday's gone
Don't turn away
You can take it on
--Russ Ballard

The bulls gave it the college try today, twice trying to push 'em higher toward recapturing the 1840 flag intraday. Both times, however, those rallies fell apart, and the indexes closed near the lows.

Let's invite our buddy Fibonacci to voice his two cents on the tape. Using last October's lows and the recent all time highs as reference points, we are approaching a 38% retracement at SPX 1800ish. This area constituted resistance back in Nov/Dec before it was taken out pre-Xmas. Because resistance, once pierced, generally offers price support, the bulls may be able to find a branch or two to grab onto to stop their slide right around here.

If not, then it's hard for the technician's eye not to gravitate to 1740. This level corresponds not only to a 62% Fibo retracement, but also to the early Feb lows.

Below that is basically a 80 handle drop straight down to SPX 1680.

position in SPX