Saturday, June 05, 2010

is SPX retracing an old pattern?

(click image to enlarge)
Market's run from March 2009 finally stopped at 1220 and we have moved into a bear market pattern unless market climbs back above 1105 quickly. In the graph above, if the current pattern retraces a similar move back in 1997-1998(Asian currency crisis) i guess 950 is the bottom of the range(Do we call that Euro crisis?). I still don't know if the market will come all the way down to 950, but it should stay above 950 if it comes down. If the market climbs above 1105 in the near term, this bearish pattern is negated. Also 1010 area is a support area above 950.