Saturday, June 07, 2008


Monthly chart shows increasing downside momentum as the bears managed to maintain the selling pressure which was evident at the beginning of the month. The index closed below its 8ema, and found support off the 34ema. Look for a test of the March and the January low, and possibly lower.

The Weekly chart shows the bears quickly overcame the bulls this past week, as the bears sold the index down below all its key moving averages on this timeframe.

The daily chart shows that the selling was relentless on Friday, selling right off the open and into the close. Current support is off the .618 fib retracement level. The market has been trading below its 200 sma since early February 2008. Look for continuation lower in the days/weeks ahead.

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