Hey look at that. The S&P 500 is back over 1,000 after stocks in New York rallied on a Federal Reserve statement that the economy was "leveling out," whatever that means. We left you in yesterday's Daily Reckoning with a promise to discuss the dreaded 'Fibonacci Retracement' on the S&P that could portend a correction.
So let's do that! And actually, it's not inherently dreadful. Our Swarm trading technician Gabriel Andre uses the Fibonacci numbers to track trends in commodities, currencies, and stocks.
In fact, he's been muttering to himself in French the last week that September may be a very good month for short sellers. He bases this on the Fibonacci numbers and the fact that futures traders are predicting a spike in the volatility index (VIX). (more)
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