Fibonacci retracement is one of the powerful and accurate day trading tools.

The S&P 500 Index recovered from an intraday low to a gain of 0.1 point, closed at 1079.38. Monday did not disappoint bulls, even with the market opening lower the market found footing early on and moved higher. The S&P 500 bounced up from its opening low in the 1070 area to make its way back to its two-day consolidation range highs in the 1080 to 1085 zone.

Yesterday I mentioned 1070 as the next support level. It is the 50% fib retracement level from the low of 1010 to the high of 1128. Too bad, I couldn't day trade today or I would be a big buyer at todays low 1069.49. well, at least we can prove fibonacci retracement is one of the powerful and accurate day trading tools.

If market can stabilize at the current level, it still has a chance to reach my target 1140-1150. However, there are some hurdles market need to deal with before reaching there. First resistance 50 days moving average 1087, second resistance 200 days moving average 1116, then the prior critical resistance 1125-1130.

I still believe market will take one more spike to the top in order to finish the 5th wave rally. 1140-1150 is the price I want to add up my bear portfolio. I am here to remind you that don't trust any rally because we are in a long term bear market. I will grab the profit potential by day trading any rally but will not hold any long position overnight, on the other hand I am accumulating short at any short term market top on extreme overbought mode.