Bull Flag on SPY

Yesterday I wrote about using Fibonacci Price Extensions to set price targets and I wanted to show you one from today that worked perfectly. Remember, on a bull flag, the initial impulse is followed by a pull back (often to a moving average). Drawing a Fibonacci Price Extension from the beginning of the pole and then to the end of the pull back gives you price targets based on Fibonacci numbers.

It is often uncanny how well this works as you can see today. The bull flag produced a price run that stopped at the 100% price extension to the penny and then leveled off there for 30 minutes!