Short

Recovery rally could have lost steam.

I have been watching the Fibonacci retracement levels from the all time S&P 500 highs to the dramatic March sell off lows. In particular, the .500 retracement level showed some resistance, but then became invalidated as the recovery rally continued to move higher. Now we have the .618 level showing resistance coupled with the likelihood of continued negative economic data, the pull back of the recovery rally could be commencing. If this is the case, I drew the Fibonacci extensions of the recovery rally to see potential target areas if in fact this is a pull back of the recovery rally. S&P 500 2550 area or a .500 pull back on the recovery rally seems to be in play if validated.

meangene70

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