$SPX Update for 08.02.2008

S&P 500 INDEX - $SPX

Monthly chart shows index to be below its 8ema and 34ema. The month of July 2008 saw aggressive bulls stepping back into the market, and managing to close the month's trading back barely above the March 2008 low. No buy signal/pattern evident on this timeframe. Eventual downside target (first target) remains at the .618 fib level.

Weekly chart shows trader indecision, as evidenced by the 2 doji/spinning tops. Index currently remains below its 8ema, and well below its 34ema. No buy signal/pattern evident on this timeframe.

Daily chart shows short term resistance is right at the .382 fib level of the last leg down. Currently there is a lower high and a test of that resistance level. It is looking more like consolidation/trading range being traced out. Once consolidation is complete, then look for the next leg lower.