Please find attached Pivot and Fibonacci levels for the S&P500. For those who believe that the market will go down, the areas between 764-769pts and around 750pts might serve as major support levels, as there is a confluence of levels many trader watch out for.Regards from Dusseldorf,
Rodryk
Rodryk,
ReplyDeleteGreat blog entry! However, I can't see the fibs or prices on your chart, but can create my own.
The guys at Elliott Wave keep waffling between a minor retracement (to fill the 768 gap) and a major drop to around 650...or...OR...if the index rises above 815 this week, then it's Wave 1 up!
I can't wait to find out!
Clark
Rodryk,
ReplyDeleteI forgot to mention. These same folks maintain that the Markets are based on waves and mass psychological principles, and therefore ignore the impact of current events. Their contention is the Markets are THE leading indicators for economic and social change, and that the news does not make the Markets, but the Markets ARE the news!
Clark
Count me a skeptic
ReplyDeleteA very good book on Fibonacci is Tony Plummer's Forecasting Financial Markets. Many years ago, after studying it, I took my kids to a daytime birthday party, then went for a few hours to an almost empty pizzeria and worked there through a book of all futures charts. I was looking for Fib retracements with a ruler and a calculator.
Occasionally the numbers came out so right, they sent shivers down my spine, but most of the time they were all over the field and far off any mark.
And then it came to me - if you throw any set of numbers and lines on a large number of charts, some of them will hit key reversal points. Any lines will do it if the number of charts is large enough, merely by a coincidence.
Just my 2 cents worth. Count me a skeptic. But if Fibs make you concentrate on the charts and help you - well, best wishes and more power to you!
Alex