The SP500 weekly finished down marginally, closing below channel support. The MACD is moving sideways – neutral. This could be the end of wave 2 up. An endless stream of bad news and political action-less jabber continues out of Washington and Europe. We expect to see the markets to continue to decline going into next week. We continue down the road 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”.