Sunday, October 26, 2008

$SPX Update for 10.26.2008

S&P 500 INDEX - $SPX

Monthly chart shows index trading well below its key moving averages, especially the 8ema. All initial downside targets have been hit, including the .886 fib level. The market has now given back all the gains made since the bottom of October 2002. No buy signal/pattern evident on this tiemframe.

Weekly chart shows the index to be well below its 8ema. While the bulls initially found support the weekbefore, the bears managed to take back all their gains this past week. No buy pattern/signal evident on this timeframe. Look for continued weakness and eventually lower.
Daily chart shows consolidation/trading range. Current resistance is at 1044.31. IF aggressive bulls step back into the market, they will have this level to clear before it can go much higher. Look to Monday's trading to see if the consolidation pattern is complete or not.

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