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Thursday, November 7, 2013

Back in the Day of Fibo 61 Retracement, Leader Indices confirming a top

Back in the day, the market was content with a 61 Fibonacci Retracement.

Starting around 2009, the market started insisting on 78 Fibo's. Now seeing more 100% Fibos to blast the stop of anyone who got in on a trend change.






The leader indices, Nasdaq and Russell (or maybe we should say the exuberant indicator indices) both show clear overthrows of the channel out of the 2008/2009 bottoms.  

Confirmation of an at least near term trend change.    Expect a "shakeout" drop of AT LEAST 8% prior to Santa Rally.




Posted by Stock at 7:16 AM

2 comments:

  1. mikeNovember 7, 2013 at 5:36 PM

    daily bear engulfing candle in the books, and a weekly one in ES, too, if close below 1753 I think tomorrow.wkly bear engulfing candle historically portends a big move down. I do not see how it climbs out of this hole. Might well even see 1760 but sucker rally then to 1675 IMO

    ReplyDelete
  2. steveo77November 8, 2013 at 5:16 AM

    Yep, thanks for the candle headsup. around 1700 I will reassess my Dec puts.

    ReplyDelete

Insightful and Useful Comment!

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