LunaticTrader

Investing with the Moon

Outlook January 31

Posted by Danny on January 31, 2011

The Nasdaq did climb back to 2750, as we indicated last week, then fell steeply on Friday.
We have been warning for an imminent downturn, as indicated on the charts.
This could well be the start of a multi-month slide.
We have come a long way since last August, but we need to remember that markets never go up in straight line.

Here is the current chart for S&P 500 Index (click for larger image);

-

The S&P touched the 1300 level, then turned down. The uptrend is still intact on this chart, so there is room for some rebound this week. But the upcoming Red Period is likely to take the S&P down in February, and break the uptrend that has been in place since last August.
Any fall below 1270 would confirm this scenario. Then the first target would become 1180.

Stay tuned, Danny

Post a comment (disagreement also welcome):

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: