24 February 2009

SP Monthly Chart and Short Term Indicators

The SP 500 is on a critical support level.

We're getting very close to the point where we either get a technical bounce, or the stock markets start breaking down dramatically.

Keep an eye out for one more plunge down and then a short covering rally. If that rally fails we could see a continuation down in a crash, albeit one in slow motion.

A technical bounce here is a higher probability but more downside is very possible.