• S&P 500 Index Headed for `Stiff Correction,' AMP Says: Technical Analysis

S&P 500 Index Due for ‘Stiff Correction’: Technical Analysis
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By Shani Raja

Oct. 16 (Bloomberg) -- The U.S. Standard & Poor’s 500 Index may be due for a “stiff” slump as it approaches a resistance level in coming weeks, according to Nader Naeimi, a strategist at AMP Capital Markets, which holds assets worth $75 billion.

The U.S. index’s 62 percent rally from its March low has brought it close to 1,121.4, which Naeimi says represents the 50 percent level Fibonacci analysts identify as a key resistance point. The performance of the index, which closed at 1,096.56 yesterday, is also diverging from measures of price and breadth momentum, pointing to a deeper “correction” than those that have occurred since the rally began, the strategist said.

“The divergences have started to build up over the past few weeks,” said Sydney-based Naeimi, whose firm went to “overweight” from “underweight” stocks in March. “

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http://www.bloomberg.com/apps/news?pid=20603037&sid=az6O532YfCpA


Double-Dipper here we come! There's no cyclical bull.

We're back to 1999 as it is, now, with this great rally.

 

And people actually get paid to make these observations!

 

Who wants to bet that there will be an afternoon push up again that completely nullifies this down move?

 

That is, if they even bother to wait until the afternoon.

 

What do you offer?

 

Correct,
BUT NOT IF we break through 1078.
EUR needs to break through 1.4850 and touch 1.4800..
If this happens , No GAP close, Otherwise we might see the gap close today, Bulls are doing their best to protect this level, they know a bunch of stops are sleeping under 1078

 

Bet ya a buck. Paypal. Deal?

 

With the Chinese on the bid at 1.4850, I'd be surprised if that caves. Thrilled, but surprised.

 

We're nowhere near 1999. We have had a huge rally off the March lows but if you back adjust the SP500 by the CPI, the market's not nearly as high now as it seems. By back adjust I mean the blue line = SP500 in "today's dollars" according to CPI. If you think CPI understates inflation, imagine the blue line higher. If you think CPI overstates inflation, picture it lower.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2607806>

 

Stunning but, can someone please confirm if this is a "definite maybe" prediction or just a a "perhaps maybe" prediction as the former is a less common reaction to resistance than the latter.