Today’s Chart of the Day was shared by Jay Ligon (@TheeDisruptor). This one is dedicated to all the Fibonacci skeptics out there. Jay points out that each major rally throughout this bear market has reversed at the 61.8% retracement of the preceding decline. The most recent rally was nearly 6%, but like the others, it rolled over after retracing 61.8% of the November-December decline. Nobody really knows why Fibonacci extensions and retracements often act as support or resistance, but this is clearly a pattern. It would be a bullish change of character to see the S&P 500 break this pattern, by reclaiming the 61.8% retracement of the November-December decline, around 4000.
Chart of the Day - Thursday, January 19th, 2023
January 19, 2023
