As always, no matter the move and its size, the Fibonacci numbers seem to give us a map of the future. (Hat tip to Charles Kirk.)
1. The 38.2% replacement roughly corresponds with the previous all-time high in the RUT.
2. To go to the 50% retracement level would fill a bothersome gap from 12/31 to 1/1/2013.
But such a move would wipe out the gains for the year for long-only funds. Can’t we expect the bulls to defend? How about the Fed? Will words from the Chairman on 2-26-2013 propel a reversal attempt if not a success?