Take a look at the Short-Term Fibonacci View on the Markets

Tom Gentile

Posted in
Daily Report

By: Tom Gentile
November 4th, 2022

3 mins read

Today was a rollercoaster day for the equities markets.  And by markets I mean the SPY, which is the ETF of the S&P 500 Index, which is what I analyze when trying to assess pending market direction for the equities markets.

The October jobs data came out pre market.  The markets gapped higher, dipped really quickly and then made a run to its intraday high of +500 or so points (on the Dow).

Mid-day things weren’t bullish at all as the major indexes were all slightly negative.  The Dow was up 500-points early in the day and by mid-day it gave up all that 500-points and a bit more.

From then on the market muscled their way back up to a respectable +400 points.

Take a look at the chart below on the SPY.  It has made a bullish move off the October low but ran into an old support level and it became a new resistance area.  This coincided with the Fed’s decision on interest rates being raised yet again.

Figure 1: 100-Day Candle Chart on SPY
Figure 1: 100-Day Candle Chart on SPY

One can call it coincidence, but I see it as market participants not wanting to take things any higher than that price point until they got the Fed’s decision and follow up commentary.

Now that the markets reacted in a ‘Sell the News’ fashion and dropped over the previous three trading days, the question to be answered is how far will it pull back?  OR even worse for the bulls, is this deemed bear market rally over and will we attack the October lows and or take them out.

Right now, that is still a possibility, but from a short-term technical view we slapped the Fibonacci Retracement tool on the SPY chart catching in the view of the chart the October closing low to closing high.

Yesterday it tested the 61.8% Fib retracement level intra day and bounced off that a bit.  Today, despite all the price volatility, it (SPY), closed up slightly for the day.

Figure 2: Fibonacci Retracement View on SPY
Figure 2: Fibonacci Retracement View on SPY

The Major indexes closed higher on the day, but down for the week.  This week broke a 4-week winning streak for the Dow and a 2-week streak for the NASDAQ and S&P 500.

What we are watching for now is continued upside to that previous peak or a break of it or a retracement to its recent pivot low 2 trading days ago.  If one wants to speculate which way the markets will go, and initiate options positions based on that so be it as that is between you and your broker.

A more conservative approach would be for either of those two price points to be broken and consider trading the momentum then.

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:  http://www.tomgentile.com/legal_disclaimers.html.

Sign Up Now for Free Education!