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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're others that were also meaningless. Did this exercise to satisfy my curiosity after hearing it cited and found, surprisingly, enough to be noteworthy '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?id=overview:ta_101:ta101_part14
