By Thomas Kee,
Stock Traders Daily

Wall Street analysts seemed very surprised by Wednesday's the 1,000-point rally in the Dow. Many are still confounded because there was no news justification for the rally. Apple  (AAPL) - Get Report was up big and oil was up, too, but it didn't seem like a "tail-wagging-the-dog" scenario. The rally was broad-based.

No, the rationale for Wednesday's biggest single-day point increase ever was not found in the news. Instead, it was found in Fibonacci calculations. The S&P 500 tested its so-called "T3 Fibonacci support" on Wednesday morning -- and from that support level, it turned up sharply.

To identify this, use the 2,815-point resistance level in the S&P 500 (its all-time high) and integrate that into a Fibonacci calculator. Then look at the corresponding T3 support level. I explain this and the oscillation cycles leading up to this, in this short video, which was published before the rally on Monday.

Reasonably, computer trading and short-covering seemed to kick in after that test of T3 support, and that was further justification for Wednesday's rally. But when we pay attention to the indicators that these computer-trading models also watch, we can actually get ahead of them.

If you want to get ahead of these big market moves, one way is to start paying attention to technical analysis again -- and that includes Fibonacci calculations. On Wednesday, these proved to be extremely valuable, and they could have put you ahead of the Dow's 1,000-point rally.

(This column has been updated.)