Thursday 25 October 2012

The Big Fall in the Stock Market is Still to Come

What a difference a week makes. Overnight we saw the Dow Jones fall over 200 points for the second time within a week. I wrote last Wednesday and focused my attention on the level of 1422 in the S+P 500.
S+P 500 Daily Chart
Source: Slipstream Trader
The horizontal line in the chart is the level of 1422, which was the high made in April this year. My view has been that a weekly close below that level will spell trouble for the stock market ahead.

Last night the S+P 500 closed at 1413, having fallen 3% in the last three sessions. If the S+P 500 remains below 1422 until Friday night then my weekly sell signal will be triggered.

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