The hour before the open was ridiculous. It went like this:
- We were already red
- The CPI came out hot
- The market plunged
- For no reason, all equities climbed INTO THE GREEN
- Then, once the open came, all holy hell broke loose.
Back to the Fib
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The IYR Fibs
Fibonaccis are cool, but they only seem to work with a handful of financial instruments. It tends to be a hit-and-miss game to figure out which these are. In my estimation, one of the most “obedient” financial instruments with respect to Fibonacci Retracements is the IYR, the real estate ETF. We have seen these lines provide potent levels of support and resistance for literally years at this point. The most recent occurred on Friday, when it blasted right up to its 78.6% level, which it hasn’t visited in 27 months (!).
SPY Fibonacci Support
A few days ago, I wrote about the remarkable Fibonacci levels that had been defined around the SPY. I noticed that this morning’s low perfectly tagged the 78.6% level (which, last week, acted as resistance for a couple of days).
My view is that important resistance at the gap, represented by the red arrow, will not be breached. The key at this point, clearly, is to get back to the other side of that Fib level so we can start the march toward 503.97, the next Fib down, and a healthy 300 /ES handles away.
The 78.6% Fibonacci
A tip o’ the paw to premium member pduncanj, who was kind enough to point out something to us that I hadn’t realized: today’s SPY peak matched with astonishing perfection the Fibonacci retracement (78.6%) going all the way back to the Halloween bottom. Here’s the daily chart:
Fibby Fibby Bang Bang
How relieved I am to have had the good sense to detect that, considering how a certain person was being a total douchenozzle privately this weekend, it meant something bad was coming. Yeah, I’m a chartist, but I’m also partly human. I can read people. TSLA is getting absolutely bombed, and I’m delighted my family can stand at a safe distance and watch the carnage. Those Fibonaccis have been working beautifully for MONTHS.
