Raising the Caution Level

The selloff into the Nov. 16 low wasn't random. The S&P 500 bottomed near another Fibonacci level, the .618 retracement of the rally off the June lows. The exact Fibonacci level was 1346.11. The low on Nov. 16 was less than 3 points lower at 1343.35. And that was that.

S&P 500 optionsXpress View Chart »

From there, the SPX has now rebounded a pretty serious 66 points to the 1409 level. The high last Friday was 1409.15. Then came Monday's gap-down opening and a pullback to the 1398 level. Then back up to the same level that stalled prices last Friday. In fact, it's noteworthy that this morning, the early high in the SPX was 1408.62, then we had another pullback to the 1400 level and a pop back up to a slightly higher high of 1409.01. It's now backing off again....660 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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