Quarterly Chart on the S&P 500--November 19, 2008
Showing the internal fibonacci levels of the rally from 1990 to 2000.
More than a DJ 30 chart, the S&P shows a bear market that began at the 2000 top and is still ongoing. The 2002-2003 bottom was a 61.8% retracement of the entire move from the 1990 low. Since then we traded up to a 2007 top less than 25 S&P points higher than the 2000 high (1576 rather than 1552).
We are now very close to touching that 61.8% retracement level again. To give some perspective of our relationship to the move up, we are trading in a range seen in the spring of 1997.
The next fibonacci level down would be between 550 and 600, which would take us back to territory seen in the autumn of 1995.
The grey line shows the slope of the initial rally in the 1980's before the exponential action of the 1990's. We are getting close to that line.
UPDATE--End of Trading Day
The 775 level did provide support early on, as the market bounced off this level and then traded into positive territory. But once again heavy selling came in during afternoon trading and the market easily broke through this support.
