SP500 Weekly Falls Almost 2% On Short Week

S&P500 Weekly -

The SP500 weekly finished down almost 2%.  The SP500 near term futures contract is about 15 points lower than today’s close.  The MACD signal line is turning 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.  We don’t spend time analyzing news.  It’s anyone’s guess what it means, but the mood is negative.  We expect to see the markets to continue to decline going into the new year.  This should be the continuation of primary wave 3 down.  As well, the 8 period moving average has now turning down – bearish.  We expect a substantially bigger drop in January as Q4 reporting takes effect.  The first line of support that should break in January is near 1340.  We continue to keep an eye out on the October 2007 formation for “fractal similarities”.

Click on chart to enlarge SP500 Weekly Falls Almost 2% On Short Week