Fibonacci retracement level stalls the rally today
The S&P continued higher today earlier in the day, and extended to the 61.8% of the move down from the January high (i.e., the 2018 trading range). That level comes in at 2742.92. The high today reached 2741.10. Close enough for sellers.
The price has rotated lower and the index trades near unchanged on the day.
What levels are key on a move lower from here?
If the 61.8% fibonacci retracement stalls the rally and we start to see more back-fill, what levels are of interest for the bulls (and bears)?
The big key area was the key cluster of technical levels that helped push the stocks higher last week.
That cluster included a
- downward sloping trend line
- The 100 day MA and
- The 50% retracement of the 2018 trading range.
That area come in at 2702 to 2707 currently.
With the current price at around 2727, the index is still 20-25 points from that key support area, but S&P points can melt away quickly. So be aware of the area in trading this week.
PS an interim level to eye would be the 2717.49 swing high from April (April high). On Friday, the low for the day stalled against that level. If it can hold, the buyers might be happy to take the index higher from there. Be aware….