The S&P 500 index on Friday broke above a level that represents a retracement of about 68% of its recent market downturn put in earlier this month. The so-called Fibonacci retracement level between 2,742 and 2,744, is viewed as a level that has proved elusive for the broad-market benchmark to overcome since entering correction territory, described as a decline of at least 10% from a recent peak, on Feb 8, along with the Dow Jones Industrial Average and the Nasdaq Composite Index . The Fibonacci ratio, made famous by a 13th-century mathematician named Leonardo Fibonacci of Pisa, is based on a number sequence in which the sum of two adjacent numbers forms the next higher number. The calculation is viewed by market technicians as a significant component for price discovery of an asset. The S&P 500 closed up 1.6% at around 2,747, well above that technical line.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News