Wire: BLOOMBERG News (BN) Date: Jul 7 2009 14:46:13 S&P 500 May Fall 9% During Earnings Season: Technical Analysis By Rita Nazareth July 7 (Bloomberg) -- The Standard & Poorâs 500 Index may retreat about 9 percent during the two-month second-quarter earnings season that begins tomorrow, according to Schaefferâs Investment Research. Should the S&P 500 fall below 882.88 points, the slide may be followed by a drop to about 820, completing a so-called âhead-and-shouldersâ pattern, said Ryan Detrick, the senior technical analyst at Schaefferâs. The left shoulder and head were formed when the S&P 500 climbed to a high, retreated and then rose to a higher peak. The right shoulder would be completed should the index, which sank to a trough and rallied, fall to a new low.
Im bearish however everyone is calling for the s$p to break down to 800 after it closes below 870-875 area, how true this is is anyone's guess. Would be nice to see a drop like that, once we break lower I believe extreme bearish sentiment will kick once again sending all indexes to March 2009 lows ONCE AGAIN.
According to Tim Ord of decisionpoint.com, we should rally to 91 on the SPY on 10% lighter volume. Looks like the rally already started. I put in a long position just in case ...