S&P 500 Index Over-Extended on a Fibonacci Basis

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The following monthly chart of the S&P 500 Index (SPX) simply shows the monthly closes from its inception.

January’s (2018) close of 2823.81 nearly tagged its long-term 140% trend-based Fibonacci extension level of 2836.

As of 2:03 pm ET today (Monday), its price is currently below its 1.27% Fibonacci extension level of 2625.

Failure to recapture and hold 2625 could see price eventually decline further to 2220 (its 1% Fib extension level), or lower to around 2100, due to a lack of major price consolidation support below its current price until then.

In my post of March 29, I had mentioned that:

  •  2632.91 was near-term resistance (which, essentially, lines up with the above-mentioned 1.27% Fib extension), and
  • 2585 was near-term support and that if that failed to hold, a retest of 2460 was long overdue.

Further equity weakness/volatility gauges to keep an eye on are detailed here.

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