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$SPX has reached the 162% Fibonacci extension of the Covid plunge. A short thread on why this *might* matter
The 162% extension marked the 2015 top and almost 2 yrs in which $SPX did not materially move higher
Within that 2009-15 uptrend, 162% (of the flash crash) marked the 2011 top and another 2 yr sideways period
And the 2020 Covid top was a 162% extension of the 2019 plunge
The 162% extension of 1998’s LTCM drop started a rocky 6 month period in 1999. $SPX was still at that level a year later, just before it peaked in March 2000
The 162% extension of the 1987 crash marked a frustrating sideways range that lasted most of 1992
The 162% extension of the 1980-82 bear market started a 1-1/2 yr sideways rangethat lasted through 1983-85
That 1983-85 sideways range was also a 162% extension of the 1973-74 oil embargo bear market
Now the 162% extension of the 2011 plunge was insignificant; I’m sure there& #39;re others that were also meaningless. Did this exercise to satisfy my curiosity after hearing it cited and found, surprisingly, enough to be noteworthy & #39;when combined with other data points’ (key)
TA 101 article on Fibonnaci
https://school.stockcharts.com/doku.php?id=overview:ta_101:ta101_part14">https://school.stockcharts.com/doku.php...
https://school.stockcharts.com/doku.php?id=overview:ta_101:ta101_part14">https://school.stockcharts.com/doku.php...
