3SOF

How effective is Fibonacci Retracement tool while doing Technical Analysis of shares and stocks?

If in a given rally, there is a retracement which touches 0.382 level or 0.5 level and bounces back the share prices are supposed to go up further and if it breaks the 0.5 level the trend is supposed to have reversed. These are the basic rules of Fibonacci Retracement applied to Technical Analysis of Shares and Stocks.

I know the S&P 500 support and resistance is 1040 and 1100-1110. I keep a closer watch on the SP500 but I'd like to know the Dow and Nasdaq's support and resistance numbers, too.

I heard that the housing market being low in sales and with the forclousure market crashing, it is affecting investors so much that they are moving money out of equities (stocks) and investing more in safer investments. Thats why the stock market has been down so much in the past week.

How does this happen? I was reading about it, but I didn't really understand. Are investors pulling out their stocks from big lenders? How exactly does it affect the stock market? I need help understanding it in normal terms that make sense.

Please advise, thank you!!