http://tickersense.typepad.com/ticker_sense/2008/06/sp-500-sector-t.html S&P 500 Fibonacci Retracement One of the more interesting and esoteric technical trading tools is the Fibonacci Retracement. For those not familiar, the retracement breaks down a particular range into five percentiles (seven including the maximum and minimum). The key numbers are 0%, 23.6%, 38.2%, 50%, 61.8%, 76.4% and 100% (0% and 100% are obviously the max and min). The biggest problem we see with this kind of analysis is the fact that it is backward looking. The chart shown immediately below illustrates the S&P 500 over the last year, with the key lines drawn.
