A Reminder of the Importance of Large Scale Fibonacci
Sat, Aug 7, 9:21 PM ET, by Corey Rosenbloom
Have you noticed a pattern to the absolute high and low so far in 2010 in the S&P 500? Let’s take a closer look to see that both are within a few points of the dominant large-scale Fiboncci grid of the entire bear market – which I find endlessly fascinating. 
This is the dominant Fibonacci grid that I have been posting frequently in updates – it is simply the standard Fibonacci retracement grid from the 1,576 high in October 2007 to the 666 low in March 2009. The software – whatever program you use – reveals that the 61.8% upward retracement is 1,228; the 50% retracement is 1,121, and the 38.2% upward retracement is 1,014. And… what are the 2010 absolute high and low for the year? Price peaked on April 26th at 1,119.80 and bottomed on July 1st at 1,010.91. Coincidence? Maybe, but I see it as a type of self-fulfilling prophecy of sorts… but that’s another story. Right now we are exactly at the 50% Fibonacci – or ‘halfway’ point – level at 1,121 which is the midpoint of this trading range. It certainly looks like a head and shoulders… but that also is another story. I just wanted to do a quick post to highlight the ‘interesting’ fact that the high and low of the year are within mere points of the respective 61.8% and 38.2% Fibonacci “large scale” retracement prices. Corey Rosenbloom, CMT
Afraid to Trade.com Follow Corey on Twitter: http://twitter.com/afraidtotrade
 blog.afraidtotrade.com
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