My guess was that major retracement tops seldom happen at a well known Fib level since it would be too easy as too many watch these levels.

Checking the data confirmed my suspicions, since the three biggest drops and retracements of the Century all stopped between well-known Fib levels, and therefore fooling the most.

In 1929 the Dow dropped 50% in the crash and retraced 54% and not a Fib level.

In 1990 the Nikkei dropped 63% and retraced three times with the maximum one being 35% and not a Fib level.

In 2000 the Nasdaq dropped 79% and retraced 56% and not a Fib level. 

In 2007 the Shanghai dropped 73% and retraced 41% so far and not a Fib level

In 2008 the SPX dropped 67% and so far has retraced 45% and not a Fib level.

Francis
www.AstroCycle.net

“fb1807″

(T&C Forums – Knowledge Contributor)