The Fibs don't lie

For anyone who may doubt the validity of the Fibonacci retracements and the proper way to use them, you only have to look at Friday's action, one of the most chaotic day's ever to see their value.

To start the day the overnight session was limit up, on the opening it hit 23.6% back to the all-time high, this level was 2622.00 (1). The break from there went 38.2% back at 2534.00 (2). Using the 38.2% rule it should have gone on to new highs and on any failure to do so, we should then look for 61.8% of the same move. The rally could only go 61.8% back up at 2593.00 (3) and the break from there took it down to the 61.8% target just mentioned from the 38.2% rule at 2476.00 (4). This now brings in the 61.8% rule, "that any time you hit 61.8% you should look for 61.8% back of the move they just made". On the rally from 2477.00 (61.8%) the target became 2570.00 (5) 61.8% the other way. They did push through this retracement by more than the norm, but we are in crazy times and by getting right back below it, the 61.8% rule came into play again, giving us a down side target of 61.8% the other way, this was 2516.00 (A).

All of our subscribers had these levels ahead of time and on the last rally from 2516.00 we were looking for 2590.00 and then 2667.00.