Monday, April 20, 2009

Market Tests Upper Trend Channel and Reverses Hard; April 20, 2009

The 4hr S&P futurs chart above shows how it tested the upper trend channel twice last week and is now reversing sharply lower. On top of that, this time the talking heads on CNBC are saying how they've seen these declines before in the past few weeks and the market rallied back. Well that complacency and over-optimism is what I want to see in market tops. I expect the S&P futures to drop to at least the lower trend channel line at the 810 area, but most likeily much lower and on into the 760-780 area.

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