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Bottom support



August 13, 2010 – Comments (4)

No, not talking about elastic undergarments; I'm talking about the S+P.  If I were a market timer, which I guess I am not; or a technical analyst; I would say that the break through the 1085 level is sort of alarming to me.  Numbers are just numbers, but the S+P's relationship with 1085 over the last year has shown that it's a level where there was a nearly bottomless well of support.  The S+P has had no problem breaking stride with the Nasdaq to maintain this level on numerous occasions.

That's clearly pierced today.  I think this means the market may have a ways to fall. 

4 Comments – Post Your Own

#1) On August 13, 2010 at 12:27 PM, Momentum21 (98.16) wrote:

It pierced that yesterday actually. It could also be a "higher low" from July 21. But then what about the 50 day? Or the gap that needs to be filled from Sept 30, 2009?

Share Planner seems to know but you have to go to his site. : ) 


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#2) On August 13, 2010 at 12:39 PM, ikkyu2 (98.12) wrote:

It dipped under there yesterday, but today it's staying.  Every time it's violated the level in the last year it's gone much further down.

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#3) On August 13, 2010 at 12:48 PM, davejh23 (< 20) wrote:

I'm also not a technical analyst, but it does look like, short term, the market has further to fall.  For now, it doesn't really look like we'll break recent lows (~1,020) before we get a bounce.  I still think we're trending lower...end of year < 1,000.

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#4) On August 13, 2010 at 1:41 PM, russiangambit (28.94) wrote:

I actually found it funny that CNBC started paying attentio to low market volume  now that the market is a bit down.

However, without the volume it is really hard to tell where market will go near term. It is mostly insitutional money right now almost completely disconnected from reality. They seem to be more conenected to the correlations in the assets classes such as currency markets because they are constantly shuffling the money in pursuit of quick profits. Dollar up - market down, dollar down - market up and so on. The macroeconomy is just a backdrop for technically driven trades.

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