SP500 Fails at Confluence Fibonacci Resistance
Last week, the S&P 500 rallied into a Fibonacci Confluence zone which was met with resistance. At present, this zone is proving to be a significant resistance zone which halted the recent strong rally. Let’s see this confluence resistance zone on the daily chart.
The main take-away is the following:
Drawing off the significant recent March swing low to two recent highs (namely the January high and the November high), we arrive at the following confluence:
837 is the 50.0% retracement off the November highs
835 is the 61.8% retracement off the January highs
Both these levels converge to form a simple Fibonacci Confluence Price (resistance) at 836, which recently served as resistance.
As of Monday morning, price had also broken through a weak confluence zone about the 800 level.
This could be the birth of a retracement swing down which we’ll all need to watch closely as it develops.
Corey Rosenbloom
Afraid to Trade.com
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