How Much Higher can this Stock Market Bounce Go? Let’s Check Fibonacci

Tom Gentile

Posted in
Daily Report

By: Tom Gentile
October 24th, 2022

2 mins read

For those of you that have heard of Fibonacci and / or the Fibonacci sequence you likely heard that you can find the sequence in all aspects of life, from human anatomy to plants/nature and in architecture to give a few examples.

You can also see it in the financial markets, specifically when doing technical analysis.

The Fibonacci sequence can be used to establish horizontal lines on a chart to identify potential support or resistance price areas for a security. Let’s see if we can use the Fibonacci sequence to see if we can assess a potential retracement price level for this bounce in the stock market.

Fibonacci Resistance Levels for SPY

Image 71
Figure 1: 60-day Candle Chart with Fibonacci Retracement Tool on SPY

The Markets Potentially have More Upside

At least for equities, which are represented by the chart on SPY, based on the Fibonacci Retracement levels shown in Figure 1 there seems to be some more room for continued upside price action.

We will see how the markets close today, but things seem bullish for right now.

Obviously, the inflation concerns are still with us and the prospects for a recession look smore likely than unlikely, but this bounce off the October 13 low pricing for that day is underway and today’s price action gives indication it could continue.

Earnings Season

Keep in mind we are in the beginning part of this quarter’s Earnings Season. As long as companies not only report earnings and revenue beats AND their forward-looking guidance is positive this should help bullish momentum to remain intact / continue.

App: Toms Option Tools

Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.


Stock and options trading has large potential rewards, but also large potential risk.

You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.

This is neither an offer to buy/sell/ or recommend a particular stock or option.

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.

No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Disclaimer of Warranties and Liabilities Tom Gentile and TomsTradingRoom, LLC including employees, consultants, and editors (“Publisher”) cannot and do not warrant the completeness or accuracy of the content found in our areas, or its usefulness for any particular purpose.

Tom Gentile and TomsTradingRoom, LLC also make no promises that our content or the service itself will be delivered to you uninterrupted, timely, secure, or error-free. Under no circumstances will Tom Gentile and TomsTradingRoom, LLC be liable for direct, indirect, incidental, or any other type of damages resulting from your use or downloading of any content on our site.

This includes, but is in no way limited to, loss or injury caused in whole or in part by our negligence or by anything beyond our control in creating or delivering any portion of Tom Gentile and TomsTradingRoom, LLC.

You are agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that Tom Gentile and TomsTradingRoom, LLC will not be liable for any I, investment decision made, or action taken by you, or others based upon reliance on news, information, or any other material published by Tom Gentile and TomsTradingRoom, LLC.

Tom Gentile and TomsTradingRoom, LLC relies on various sources of information that we believe to be accurate and reliable. However, we make no claims or representations as to the accuracy, completeness, or truth of any material contained on our site.

Tom Gentile and TomsTradingRoom, LLC are educational portals, providing content for educational and informational purposes only. Neither Tom Gentile nor TomsTradingRoom, LLC are a broker/dealer. Investors need a broker to trade stocks and options and must meet certain requirements. All securities, futures, and investments data and ideas are offered to self-directed investors. All prices in USD unless noted otherwise.

A full disclaimer can be found here:

Sign Up Now for Free Education!