First of all let me say that long term swing trading is not for everyone. It takes extreme patience, discipline and an XXL set of cahoonas comes in handy on pullbacks.
On October 27th, 2011 the S&P 500 E-mini contract, the ES, broke above and closed a long term 61.8% Fibonacci resistance level of 1256.75. You can view that post and chart here.
The new Fibonacci retracement drawing gave us a long term -23.6% target of 1341.25 which was hit yesterday, February 3rd, 2012. If you’re skeptical of the Fibonacci methodology, let me put this in perspective for you. The Fibonacci drawing gave you 2 entry points, the 50% and 61.8% levels and a little over 3 months later the projected target was hit to the tick. Not close, not almost, but exactly to the tick where it pulled back and went sideways for 3 hours before hitting 1342, the high of the day.
From the 50% entry level to the target would have paid you +162.5 points. From the 61.8% level to the target would have paid you +188.5 points (per contract). You do the math.
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S&P 500 E-Mini contract 1341.25 target hit
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