Sunday, December 12, 2010

S&P at important levels

Here is a monthly chart of the S&P with the Fibonacci levels drawn on it, with the 2007 highs being the top and 2009 lows as the bottom. As can be seen in the chart, the index is pretty much right at the 61.8% level. It should be noted that the index did meet at first resistance and later support, at the 23.6%, 38.2% and 50% levels. This just goes on to show the importance of the level we are currently at and also the importance of using multiple time frames while trading, even if you are a short term trader.


Take care and good luck!

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