Friday, August 29, 2008
S&P 500 Futures on 29th August
Yesterday there was a rally in US Markets - S&P 500 Futures rose to almost 1300 level. Looking at the Daily Chart of S&P 500 Future, I have two things to say :
1. The S&P 500 Futures could not manage to get above the rising wedge support line which was broken decisively on 19th Aug.
2. it is still well below 1320, the Fibonacci retracement of 50% of the high of 19th May and low of 15th July.
The above points do point to one thing - yet another suckers rally. All these rallies that we are seeing so frequently are fierce and fast - typical of Bear Market rallies. So I would maintain my view that the primary Bear Market trend is intact.
The one thing that is good for bulls is S&P 500 Futures are currently above 55 EMA.