38% retracement on the S&P 500

From its peak in September- October at around 2920, the SPX dropped all the way to 2350 in December. The current rally from this level suggest that a 38% Fibonacci retracement would bring the Index to around 2570. We are almost there. That level is also a strong resistance. The 2570-80 level acted as a support in February, April and May of 2018.

It suggests that the strong V-shape rally that has taken place lately will probably fade. A time correction is needed.