Fibonacci Lines Retracement on DJIA

Today was pretty brutal for the bulls, but the Fibonacci Lines suggest the retracement may stop at the 38.2% line. I held onto my longs because I didn’t receive any individual or market reversal signals. In fact, even with 94% of today’s volume being on the sell side, my system really didn’t drop as much as I thought it would. I wanted to buy long ETF’s after the close, but held off in case we sell of more next week as it’s a very real possibility.

I’ve not done nearly as much research on the Fibonacci Line Retracement levels, but many people do so it pays to monitor how the market behaves at certain key levels. I am still very suspicious of a market collapse as that is the obvious play. Volume rose and that is somewhat worrisome however it was fairly easy for me personally to weather today’s drop as my positions are small as were the losses.