Notice the upper chart of the $SPX. We have already breached the exponential trendline that has been the primary support for the rally from March (the trendline with the black arrow pointing to it). If we now go on to breach the deeper trendline (pointed to by the green arrow), then the Bear has probably returned. The light blue arrow shows the only correction that occurred since March that was deep enough to use this lower trendline for support.
4 comments:
Everyone is expecting a bounce off of 1,060 and a rally to 1,250-1,300.
Hi Shankar,
I would expect a rally Monday, yes, but there is a good chance that the trend has changed. A little more confirmation is necessary, though, and that would be the failure of the bounce to retrace the damage done so far...
Regards,
Mark L.
We'll probably go down in early part of Monday and then a rally attempt for 1-2 days. Failure wouldn't be good.
Very weak indeed.
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