For those who believe in Fibonacci numbers (I do not, but sometimes I check these numbers, just for fun) - please, have a look at the chart below:
The chart shows S&P 500 index, starting from 2007. In October 2007 the index hit its record at 1,577 points. Then a bear market in stocks started. The bottom was printed in March 2009 at 666 points.
The difference between the peak and the bottom is 1,577 minus 666 = 911 points.
According to Investopedia, the 161.8% level is regarded as the so-called Fibonacci extension. 161.8% of 911 points is equal to 1,474 points. Adding this number to the bottom of 666 makes 2,140 points. This is nearly exactly where S&P 500 hit its intra-day record: 2,134.72 on May 20, 2015.
Do you like it?