Monday, April 20, 2009
S&P Decline Has Legs, Should Continue to Break Below 800; April 20, 2009
Market decline today looks like a top is in, at least in the near term. NYSE breadth was extremely weak today with almost 9 declining stocks for every 1 advancing stock, an amazing 96% of all NYSE volume going to the downside, and 479 out of 500 S&P stocks trading down on the day. So today was a solid down day across the board. Notice that the index reversed sharply at the ascending parallel trend channel I drew above. After the second test here, I expect the index to charge lower toward the AT LEAST the lower end of the trend channel which crosses the 808 area tomorrow.