SP500 Weekly Closes Below Channel Support

S&P500 Weekly -

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”.

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