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A place for friends to gather and view stock market charts, discuss technical analysis and market outlook. What is your Principal Asset? How can it be developed? Each and all should do their own due dilligence and homework before investing. And by no means should you use anything I say or show here as a sole basis to buy or sell securities as everything is for educational experience only.

Saturday, January 30, 2010

$SPX


The S&P is looking pretty bearish with a monthly engulfing pattern and a topping tail hammer. Take note of the consolodation of the moving averages:

5 month - 1075
20 month - 1010
50 month - 1236
200 month - 1032

Bottom line is if 1075 does not hold 1250 is a pipedream for 2011-2012 and the most likely 2010 scenario will be a stairstep down
1050,
      1030,
             1010,
                    1000,
                           930,
                                Double bottom at the fan line around 700.

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