Confession time! Well, not so much confession. More like correction. You see, the anchor points I was using on the /RTY futures weren’t appropriate. Yes, one of them was the high for the year, and that’s just dandy. I’m still using it. But the second one I had put at the low for 2023, and that turned out to be not very useful. The more appropriate and logical anchor point is the Covid crash low, so here is the properly-drawn Fib with its accompanying levels. I have put a thick rectangle around the range we’ve been trapped within over the past two years.
You can see, based on this properly drawn retracement, what a good job the Fib has done providing support. We have been rocketing since late October, and we’re very close to the next Fib level higher. If we blast past that, we may – – for the 4th time – – make yet another “peak” before falling again, but if any market gods are reading this right now, gosh, I sure would appreciate it if we didn’t have to bother. Using the Fib as resistance would make my life a lot easier.
Looking closer, you can see just how close we are getting to the aforementioned Fib. I don’t think there’s a single surviving bear out there besides poor old Tim at this point, but if there are, good luck to us both!
