I was curious this evening, being a cold Saturday night with negative 10 windchill, so I looked at the specific numbers for the S&P move, just as I did for the Dow.
The October 2007 high print was 1565.
The March 09 low was 666.79 *How is that for you fans of the Omen movie… 666? Did that get any mention in the media? Kind of creepy…
Any how, the math, thankfully for my small brain, is easy. 1565.15 minus 666.79 gives us 898.36 …… Half of that figure, (the total down move from high tick to low tick) is 449.18…. Add that to the the low at 666.79 and what do you get?
1115.97…. Three times in the past ten days, we traded right at or above that level, with the recent 9-month highs at 1116 and change….. That is why we are at an interesting level in this rally…
The low in March 09 was a twelve year low.. Yet once we caught a bid, despite the negativity, we have had a perfect 50 percent retracement. Now the question is, will we extend another 12 percent for a Fibonacci 62 percent rally ?
Good Trading
