Fibonacci Time Zones for SPX May Show Possible Turning DatesPrimary Chart : Fibonacci Times for SPX
Fibonacci Time Zones for SPX May Show Possible Turning Dates
Fibonacci proportions provide useful tools for working with price relationships and time relationships. The price relationships are perhaps the most familiar: price moves (swing highs to lows on various time frames) may be analyzed using Fibonacci retracements, extensions (of retracements), and projections. But time relationships can also be useful.
The primary chart, Chart 1 above, shows Fibonacci time relationships using tools available on TradingView. These Fibonacci time relationships have been applied to the S&P 500, a major global equity index based in the US.
Looking backwards in time to begin, the March 29, 2022 high appears to have been caught by the .50 retracement in time of the entire YTD decline from the all-time high on January 4, 2022, to the recent major low on June 17, 2022. Though not show, the major lows in March 2022 align well with the .382 retracement of the YTD decline.
Fibonacci Relationships Showing Importance of August 9-12, 2022
August 9, 2022 , could mark the start of a time frame to begin looking for some sort of turn (pullback / retracement) in the S&P 500 (SPY). Undoubtedly, the beginnings of a turn yesterday ended up being a whipsaw. But several Fibonacci relationships, in fact, support August 9-12, 2022 being important in Fibonacci terms .
1. But August 9, 2022, equals the 1.618 extension of the March 29, 2022, to June 17, 2022 swing . It also shows the date that is .618 times the distance from March 29 to June 17 as projected from the June 17 low (which is a different way of expressing the same concept as a 1.618 extension of this time frame).
2. Coinciding with this date on August 9, 2022, is another Fibonacci time relationship marking Aug. 11, 2022. This time relationship is shown in the next chart below.
Supplementary Chart 2: Fibonacci 2.618 Time Projection
3. Another Fibonacci proportion shows that August 12, 2022, coincides with both of the other two early August 2022 dates with Fibonacci significance. This time relationship is shown in the next chart below.
Supplementary Chart 3: 1.618 Time Projection of the First High-to-High Cycle in This Bear Market
Fibonacci Relationships Showing Importance of Late September 2022
Additionally, a number of days in late September 2022 appear to have Fibonacci significance. See the primary chart, Chart 1 above. September 28, 2022, is a 1.618 time extension of the entire YTD decline. The other two Fibonacci vertical lines on either side of this date assume—perhaps incorrectly—that August 11, 2022, marks some sort of swing high that leads to a temporary pullback or perhaps a longer-term decline. An additional chart points to late September 2022 as having important Fibonacci dates.
Supplementary Chart 3: .50 and .618 Fibonacci Proportions of the Entire YTD Decline as Projected from June 17, 2022
Limitations of Fibonacci Time Work
Fibonacci time analysis remains less concrete perhaps than other forms of Fibonacci price analysis given the subjectivity in choosing highs and lows from which to measure. But it can be enjoyable to do and occasionally help locate key time zones for market turns.
This article attempts to apply Fibonacci relationships to only the most obvious swing highs and lows in the current bear market that began January 4, 2022. And it simply does not address whether lasting lows were made on June 17, 2022 or whether the index is destined to make lower lows and continue the bear market in coming weeks or months.
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