I have followed the blue fan for several weeks now and it has provided guidance, especially with the bottom fan. Tonight I added the yellow attempting to see what would happen if I connected the 2007 high and July 2010 low.Notice how that trendline nearly connects all the reaction highs in 2007 and 2008 and the reaction lows for the first half of 2008.
From that the 38.2% Fib fan lined up with the April 2010 high perfectly. Most recently the market broke above that fan.
If these fans mean anything, 1230 is a likely target at the 50% fan. Combine this with a recent chart I posted using the reverse Fibonacci technique and the case for 123o is very compelling.
Here's that chart again below.
I have posted similar charts before using this technique. What I find compelling is that the confluences in the previous charts did not line up nearly as perfect as this one does.
Here's another chart we should not forget about. The inverted head and shoulders targets the same area.
