GZ,
Looking at the S&P 500 cash monthly chart and I see that 959.67 is a simple Fib retrace off the all time high of 1552.87. Also, there's a solid horizontal support area going back to 1997 between 1000 and 900.
Actually, it's a very large descending Triangle, which is often brings a bearish resolution. <sighhh>
charts.barchart.com
While on this chart I see that from this price peak... go back horizontally to the big outside monthly bar in 1997... when this span is carried forward that distance is exact for July 2002.... thus a key month.
So there's every opportunity for the players to reverse their psychology. The investing climate changed in March 2002, bringing this sell off to date...., and I expect July [for a number of reasons] to become very slowly... the beginning of improvement in the world wide investing psychology.
However, a break down here could mean difficult economic times for the whole world..., and especially in the USA and Europe. It maybe we have a darker passage ahead...., for whatever reason.
I agree with you..., if this area on the S&P breaks apart, it opens a door much lower.
My Best and Good Trading,
Chip |
