Calling The SPX Reversal

Fibonacci timing does not always turn the market, but it is always worth watching for a possible reversal. Recently, we had a confluence of Fibonacci timing in the SPX cash chart. This is what I shared in the "Off the Charts" segment with Jim Cramer. 

So far we've seen a rally of 263 S&P points off this timing work.  [Editor's note:  The index closed more than 40 points higher than where it was when Carolyn wrote this, so the rally is now over 300 SPX points.]

Note that we wait for triggers before we get excited about a timing reversal. Now at this point I have a potential upside target at the 4487 area.  Since we don't always meet our targets however I am suggesting a trailing stop. 

Also note that I have a couple time windows starting early next week for a possible high...another reason to trail up stops on longs!!

Carolyn Boroden, who is renowned for her expertise in Fibonacci price and timing analysis, hosts the Fibonacci Market Analysis service at ElliottWaveTrader.