People draw fibonacci's variously. This one begins at the March double bottom and ends when the S&P broke it's established trendline on May 24th. As you can see, that resulted in some retracement lines that make sense - including the Aug 3rd touch and reversal at the 61.8% line. This is typically the line in the sand that says "Drop below here and we break the prior trend, and establish something new. Bounce from here and we avoid any such Bearish chatter."
What is clear is the fact that we are now entering an area of congestion and overhead resistance. My guess at this point is that any further advancement from here will initially involve some tough sledding. Look for some people to book their short term profits here, as well as others who missed their opportunity to get out at the top, to ring the register.
The long and the short of it is - look for the market to retest the 1430 area. If buyers show up and we carve out a double bottom, I expect this market to get some legs.
