Fibonacci ratios point to stock market top

The rally in the iShares MSCI All Countries World Index Fund since the low of March 2009 looks to be approaching a top based on Fibonacci ratios, says Edward Loef of Loef Technical Analysis. The chart shows a succession of rallies and retracements all built around Fibonacci ratios, especially the Golden Ratio. If March 2009 is the low, the top in 2011 represents a 61.8% upward retracement and today’s level a 100% retracement, or in other words, the top. According to Loef, this sets the stage for a 23.6% or 38.2% downward correction.