$SPX Update for 04.06.2008

S&P 500 INDEX - $SPX

Monthly chart shows that the March 2008 trading activity resulted in a doji/spinning top, indicating indecision between the bulls and the bears. The bulls found support 5 months from the selloff which began October 2007 (5 is a fibonacci number).

Weekly chart shows that the market found support 7 weeks after the high made from the first week February 2008 (the number 7 is a Lucas number).

Daily chart shows upside hesitation, as indicated by the 3 small range trading days towards the end of last week. Friday's price action resulted in a doji. This doji was also made on day 13 from the March 17, 2008 low (13 is a fibonacci number). Next week should provide better sense of direction. Chart pattern being traced by price action still looks corrective to me, and so would not be surprised if market shows weakness and more downside.