THE FIBS

Not much news this weekend except for the rejection of the MSFT offer by the YHOO board. Seems to be a bit similiar to the rejection by BEAS of the ORCL offer. We know how that turned out.

FWIW- some important areas on the chart for the SPX/DJIA/NDX;

The SPX had a low to high from about 770 in Oct 2002 to a high of 1,576 in Oct 2007. The 61.8 FIB retracement is at/near 1,270, which also happens to coincide nicely with the Januray 23 low.

Also, note the 50% retracement level is the 1,175 area - hopefully we aren't going that low.

The DJIA- hit its high on October 9 at the 14,200 level and the low in Oct 2002 at/near 7,200. The 61.8 retracement level at/near 11,500 and the January low was 11,635. The 50% retracement level near 10,700- hopefully not seen.

The NDX low 795 and the high 2,239 with a recent low of 1,693, quite near the 61.8 FIB at 1,687. The 50% retracement quite a bit lower near 1,520.

My guess is the recent lows get retested but also find lots of buyers near those levels if/when they get tagged.