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[dalcindo]

Re: $SPX - 940, 875 are Fib's 50% & 32.8%, Respectively:


I would venture that significant support would occur around 875.40 based on the chart below, where this price level has provided a significant amount of S/R since late OCT 2008.

In fact, if you consider major pivots with a Fibonacci overlay, you will notice a near-perfect synchrony of pivots with significant Fibonacci levels in the following dates:

Significant Fib Validation Events
1 - NOV 08 = 61.8%
2 - JAN 09 = 50%
3 - JAN 09 = 38.2%
4 - FEB 09 = 38.2%
5 - APR 09 = 38.2%

(Note also how many times the 38.2% got validated)

So, overall, multiple and technically significant Fibonacci validations at this 875.40 level increases the probability of clustered trading around 875.40's, IMHO.



D.