Is it possible that the S&P could follow the path Gold took 7-years ago this week or will it be “different this time?”
Seven years ago this week, Gold had experienced a 9-year rally, taking it to its Fibonacci 261% level based upon the highs and lows at each (1) in the left chart above. Once it hit the 261% level, it stopped on a dime and started a long-term downtrend, where it is now a third lower than 2011 levels.
We applied Fibonacci extension levels to the 2007 monthly highs and 2009 lows at each (3). The S&P has experienced a 9-year rally, taking it up to its 261% extension level at (4).
Joe Friday Just The Facts- The S&P is facing an important 261% extension level test after a 9-year rally similar to what Gold did in 2011. The big question for the S&P is this… Will it be different this time?
