$SPX Update for 10.19.2008

S&P 500 INDEX - $SPX

Monthly chart shows the market has retraced beyond my initial 2 targets and down to the 3rd target at the .886 level. Aggressive buyers stepped back into the market as evidenced by the bottoming tail on the current candle. Index remains well below all key moving averages and the down trendline in place. No buy signal/pattern evident on this timeframe.

Weekly chart shows consolidation resulted from last week's trading activity. While early bulls stepped back into the market early in the week, they were soon overcome by bears towards the end of the week. No buy signal/pattern evident on this timeframe.

Daily chart better shows the consolidation pattern being traced out by the market participants. Index remains well below all key moving averages on this timeframe. While the price action early in the week showed promised, this soon vanished as the bears managed to push the index back down below the 8ema. No strong buy signal/pattern evident on this timeframe. Look for continued consolidation before the next leg down.