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!!