Sunday, March 15, 2009

Has the Market hit a low at 666 on the S&P500?

(click on image to enlarge)
As you can see in the above image, the S&P 500 dropped below the long term up trend-line(red-line) from the 1980s, stayed there for a couple of days, then regained strength and went above the trendline. Also on the Fibonacci retrace , 666 is the 61.8% of the move from 1982 to 2007. So we have two technical patterns agreeing on this low. Now in order for this to be "the bottom" we need a retest. If the market falls significantly below 666 on the next leg down, then this pattern is null and void.

on Fibonacci retracement :