And One More Fib to Take Note Of

In addition to the fib relationship discussed earlier (here), there is another. If the decline all year to the May 20th low was pink A, and everything since then pink B, then we would like to see a relationship between the two, and we also have that here: pink B is 50% of pink A right at these levels, as well:

SPX

The setup looks ideal. Multiple fib relationships at the 200-day. It would have been best to have anticipated an outright expanded flat like this, goodness, but I can’t easily see how I would have done that just because expanded flats are rare anyways.

Anyhow, I like this a lot, and I have begun to open bear call spreads just above us.

I now think the market reacted as if the Fed is being dovish by going to meeting-to-meeting instead of guidance, and I think that will turn out to be a big mistake.


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