The SP500 weekly finished up over 16 points and broke above channel resistance. The MACD signal line is pointed down – bearish. As we said last week, this could be the end of wave 2 up. Endless streams of bad news and political action-less banter continues out of Washington and Europe, although Europe was somewhat muted this week. We don’t spend time analyzing news. It’s anyone’s guess what it means. We expect to see the markets to continue to decline going into next week. This should be the continuation of primary wave 3 down. As well, the 8 period moving average has now turned up – bullish – but a moving average does not serve well as a turn indicator – it acts more to confirm a trend change. A bigger drop should occur in January as Q4 reporting takes effect. We continue to keep an eye out on the October 2007 formation for “fractal similarities”.