Although I was nervous as hell when I wrote it, I am exceptionally proud of the premium post I did early on Wednesday called The First Key Line, in which I laid out very specifically what the key break points were. One item I wrote in particular was:
The S&P 500 has been amazingly Fibonacci-friendly this year. There are actually three Retracements drawn below, which for me is incredibly cluttered, but I’ve made an exception. As the arrow shows, the did a perfect 50% retracement of the August 15th-October 13th plunge. If we push past that, the bulls are just going to keep winning. On the other hand, there are THREE Fibonacci retracements that would fail if we get below 3800, so that would be a massive victory for the bears if we can get below that Big Round Number before this week is over.
Here was the situation at the time:(more…)