Has The S&P 500 Broken Support? ~ market folly

Tuesday, November 3, 2009

Has The S&P 500 Broken Support?

These next few days in the market will be pretty important given that the S&P 500 seems to have violated its primary trendline from the lows in March to the recent top. So, the question to ask is, does the market drop further from here? Or is this simply another tiny pullback like we have been seeing? MarketClub has analyzed the S&P 500 in this video and has identified potential areas the market could drop to if things got nasty. Additionally, they outline the potential for a head and shoulders top to take place where we could see yet another mini-rally before finally selling off.

They've also noted the divergence in the MACD for some time as it has turned negative a while ago and is downtrending while the S&P continued to slowly head higher. Needless to say, they are cautious and are watching these next few days to see how the market reacts to breaking through this primary trendline. Watch their S&P 500 thoughts here. Lastly, don't forget they are offering a free trading course via email for those interesting in learning more about technical analysis. As we always like to say, you can never have too many tools in the investment arsenal.

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