Taking A Look At The S&P 500

No question, this market rally has been persistent. So today we thought it would be prudent to post up the most recent video from the guys at MarketClub examining the S&P 500 which could give cause to be cautious. Their quick technical analysis shows that from the highs in October 2007 until now, there is a definitive trendline to the downside that the market has rallied right up to. Conveniently, this same level serves as a 50% retracement if you draw out the fibonacci tool from those highs of October 2007 to the lows of March 2009. Check out the technical analysis of the S&P 500 for more.

Fibonacci Retracements S&P 500: Technical Analysis Video

Since we like to look at both sides of the argument, we thought it would be prudent to highlight a potential bullish scenario as identified by technical analysis. This comes after we just earlier today looked at two reasons to be bearish.

The bullish scenario stems from a potential inverse head and shoulders and levels identified by Fibonacci retracements. Here's the video that outlines the potential scenario. (Unfamiliar with Fibonacci? Watch this educational video).

A screenshot we've taken from the video highlights that the retracement tool was drawn from the highs of October last year to the lows of March of this year. By placing it as such, it identifies four potential fibonacci retracements at S&P 500 levels of: 878, 1011, 1119, and 1227. We are currently floating around the 38.2% retracement of 1011 and looks like we may head higher. When the market initially flew past the 23.6% retracement at S&P 878, we noticed that it came back down and tested that level. That level held and the market was propelled higher. The next stop in terms of retracements where we might see resistance is 1119 and after that, 1227. If the potential inverse head and shoulders plays out to fruition, then 1227 on the S&P would be a likely upside target.

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The guys over at MarketClub have done a nice job of walking you through everything so you really only need to watch the first half of the Fibonacci retracement video. While we are not bullish at this moment, we want to be clear that it's always prudent to examine both sides of the argument. (After all, Doug Kass called a top in the market for this year). One of our favorite sayings is that the market can remain irrational longer than you can remain solvent. Hedge fund manager Paul Tudor Jones likes to let the market guide him and that's exactly what we'll do here.

Crude Oil & Gold: Both Bounce Off Fibonacci Retracements

Wanted to link up a few different technical analysis videos we've seen recently for those who may be interested. These are a bit more educational in nature since they were filmed a few days back, so just a head's up on that. They're always a great resource for those looking to fine-tune this analysis within your investing or trading arsenal. And specifically, these videos focus on Fibonacci retracements, a tool that many technical analysis gurus swear by.

Firstly, the guys over at MarketClub are back looking at a video of both Crude Oil and Gold. And, they noted a similarity between the two: both recently bounced off Fibonacci retracements. In a previous video we highlighted, they thought Gold would retrace to around $924 or so and that's exactly what happened. They are now targeting $980 to the upside before the metal encounters more resistance. And, of course, $1000 is the key level for gold on the upside in order to breakout and really start running. Adam suggests putting on a trade with a stop around $950 and you can see the other key technical levels he's identified in this separate gold video. Oil on the other hand reversed off the $63 level which coincides right with a Fibonacci retracement as well. They said they were looking for crude to run into more resistance there around $74 in the near-term. You can watch the video showcasing these two very recent Fibonacci retracements here.

If you're unfamiliar with Fibonacci retracements, we highly suggest learning about them and there is a great educational video on Fibonacci's here. And of course, if you're new to technical analysis altogether, we'd suggest checking out our recommended reading list on the subject.

Fibonacci Retracements: Technical Analysis Educational Video

Some readers have been asking for some more technical analysis tips and tools so we wanted to post up another useful video for you all. MarketClub has a great Fibonacci video for those of you wanting to refine or add to your technical analysis arsenal.

This educational video details Fibonacci retracements as it pertains to charts. This is yet another great tool in the world of technical analysis that many are unfamiliar with. The video is a great primer as to what it is and how to use it, so check it out. Also, don't forget we've outlined a Technical Analysis recommended reading list before too, which is a great resource.