Tuesday, June 9, 2009
Break and Close Beneath Trendline Needed Soon; June 9, 2009
Above is a daily S&P futures chart that shows an ascending trendline that has been resistance and support several times since November of 2008. Obviously the market thinks this trendline is important. Right now the market is trading above it, but is having a very difficult time with any follow-through to the upside. Strong break and close beneath the trendline this week will signal the next decline phase underway with an immediate target of 875, and possibly much further.
The sideways action in the market is not encouraging for the bears because this might prove to be the 3rd time in a row the market corrects itself by moving sideways instead of down. Half of my full position will stop out at 958 in the S&P futures.