$SPX Update for 09.07.2008

S&P 500 INDEX - $SPX

Monthly chart shows the bears came out in force last week, and managed to close the index below all key moving averages and also below the March 2008 low. The trading activity for the first week of September has managed to take back all the gains made in August. No buy signal/pattern evident on this timeframe.

Weekly chart shows the strength of the bears, as they took back all the gains made in the prior four weeks. Index remains below all key moving averages on this timeframe. No buy signal/pattern evident as of yet.

Daily chart shows the bulls found short term support off a prior key LIS. This creates a bullish gartley butterfly type of pattern. IF this gartley plays out, THEN first upside target is the .618 fib level at the 1277 area. The index remains well below all key moving averages on this timeframe. This week's trading activity is key, especially since the U.S. government has now seized both Fannie Mae and Freddie Mac on the weekend. How will the markets react? Only time will tell.