Several equity indexes are nearing significant resistance levels including the cash S&P (SPX) shown below. While not largely followed, the 78.6% Fibonacci retracement level offers a great opportunity for a reversal. The chart shows that SPX has reversed 78.6% of the move from the May 2011 high to the October 2011 low on Wednesday.
This provides an opportunity for a reversal, as does the testing of the 200-day moving average in the financial select sector spider (XLF) shown below.
David Wienke runs Triquetra Resources Ltd. in Riverside, Ill. (www.triquetraresources.com).