Essential April Fibonacci Retracement Levels for Dow NASDAQ and SPX

Apr 11, 2014: 11:33 AM CST

With the US Equity Markets correcting lower against recent highs, let’s take a moment to update our short-term Fibonacci Retracement Reference levels and note something very interesting about how far the NASDAQ has fallen.

We’ll start with the S&P 500 levels:

SPX Fibonacci Retracement Trading levels

The S&P 500 is stair-stepping lower, starting with the 38.2% Fibonacci Retracement level which formed the lower bound of the recent rectangle pattern.

The recent breakdown under the 1,840 (1,837) reference level led immediately to a successful test of the midpoint or 50% level into 1,820.  Note the current intraday rally back to the underside of the 1,837 level.

The next short-sell trigger will be a breakdown event under 1,818.50 (target 1,800).  Keep these levels in mind.

Next, the levels in the Dow Jones Industrial Average are similar (in structure):

Dow Jones Fibonacci Reference Levels

With the pattern similar to the S&P 500, we’ll focus on the 16,145 level (38.2%) along with the current 16,000 confluence.

A failure or breakdown under 16,000 opens a quick sell-off (open air) pathway toward 15,850.

The most interesting chart – in comparison – is the NASDAQ Index:

NASDAQ COMPX COMPQ Fibonacci Retracement Reference Levels

We can use Fibonacci Retracement Levels to compare similar markets (or ETFs).

For example, while the S&P 500 and Dow Jones break the 38.2% and challenge the 50% or “midpoint” Fibonacci levels, the NASDAQ has already shattered the 61.8% level and almost retraced a full 100% to the prior low carved out in February.

Namely, we’ll be focusing on the “round number” 4,000 level.

Note how price has already stair-stepped each of the three main Fibonacci Levels (4,221, 4,175, then 4,130).

Bookmark this page and keep these reference levels handy when planning intraday or swing trades.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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