If S&P drops below our previous low (in your gross box) we are in trouble. The chart doesnât account for earnings season however.... earnings and other economic news will determine which way we are headed from here. Not the charts.
So far Earnings are a flop, not equal to the stock prices they warrant ! GE, GOOG, CAT... AAPL with Iphone 4 issues ( and their 20% of NASDQ cap, so if they sell off ouch) Also economy is showing signs of poor if not negative growth.. Charts are pricing in the new NORMAL... Next few weeks will confirm this I feel !
Yea I agree with you actually. Just saying if there is any positive news... everything will turn around in a flash. Look at last week for instance. CNBC canât wait to pump up the market. Daily charts are defiantly in a downtrend though: Lower highs and lower lows. I am not shorting this market however in fear it might take off. Just buying the lows... may be risky in a downtrending market but its working.
not seeing the support there economiczero... think if we hit those levels we are prob headed to 09 march lows. I'd start looking to be a buyer around 750.
I'm thinking new stimulus talk should come in around the end of 2010 after the fact they realize the only way forward to sustain a propped up economy is to add in more stimulus. Of course this will just lead to another false uptick in economic activity. I think a drop below 1000 on the SPX is coming in 2010, who knows if the mid 900's will be support, it doesnt take much for the market to fall 10% these day. It just rallied 8% in the last week and half before giving up a bunch of points on Friday. A few bad earnings out of tech or banks this week could certainly drop the dow back below 10,000 once again.