S&P 500 struggles to hold gains at 1st key Fibonacci target, again
The S&P 500 is in danger of failing to sustain gains to the first major Fibonacci retracement target of the October selloff, for the second time in three days. From the Sept. 20 record close of 2,930.75 to the Oct. 29 multi-month low of 2,641.25, the 38.2% Fibonacci retracement would come in at 2,751.84. The first retracement is the equivalent of 1 minus the Fibonacci ratio of 0.618, which is known by some as the golden, or divine ratio, given its prevalence throughout nature. The S&P 500 rose to an intraday high of 2,753.76 earlier Tuesday before paring gains to be up 0.4% at 2,749.18. On Friday, the index rose to a high of 2,756.55 before reversing to close down at 2,723.06. Meanwhile, the Dow Jones Industrial Average was up 93 points at 25,555.23, which is above its 38.2% Fibonacci target of 25,354.17, while the Nasdaq Composite is up 0.4% at 7,360.98, which is still well below its 38.2% Fibo target of 7,454.98. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.