Bear Behavior?

I noticed something in the charts yesterday involving the 78.6% Fibonacci level on the S&P 500.

First the macro chart for the past 3 years:


Second the micro chart for the past 3 months:


Note in both cases that the drop from the high on the chart to the low and the subsequent run up to a secondary peak is at the 78.6% Fib level in both cases.

Is this classic bear market behavior?

More evidence in this article, as stocks move lower on good news.

From Businessweek:

Stocks closed with slight losses Monday after falling in the last half-hour of trading. Major indexes had been up for most of the day after several economic reports suggested that the recovery is continuing.

The Dow Jones industrial average fell 22.71 points, or 0.2 percent, to 12,197.88. The broader S&P 500 index lost 3.61, or 0.3 percent, to 1,310.19. The Nasdaq composite fell 12.38, or 0.5 percent, to 2,730.68. Each index had been up more than 0.4 percent earlier in the day.

The Commerce Department said consumer spending rose at its fastest pace in four months in February, though some of the increase was driven by higher gas prices. The National Association of Realtors said more Americans signed contracts to buy homes in February than economists were expecting. Sales rose in every region but the Northeast, but remained below what is considered a healthy level.

In Libya, rebels gained ground against longtime leader Moammar Gadhafi after international airstrikes against Gadhafi's forces. Oil prices fell below $104 per barrel after rebels retook control of key port towns Ras Lanouf and Brega and said they would resume exporting crude within weeks.

Close for the market Tuesday is 1319 on the S&P.

It will be very interesting to see what happens over the next few days.

Will 1324 hold and act as resistance?

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