Thursday, July 9, 2009

S&P Headed Toward 845 at Least; July 9, 2009

(I was unable to post anything the past couple days as I was not feeling well)

The head and shoulders in the S&P is proving to be a reliable bearish pattern as it has fallen over 60 futures points from the right shoulder. There may be a near term bounce, but it should be capped at the 900 level and lead to further selling. A close beneath the neckline at 875 should trigger a cascade of selling to the 845 target level I have. But it could possibly fall to the 800-810 if it so chooses. The short term trend now is down so I'm aligned with that trend.