Friday, September 5, 2008
S&P 500 Futures As on 5th September
In my last post an its previous post I told in clear terms that the rally that was there in US Markets was none other than a suckers' rally. Yesterday you saw what happened. Actually the rising channel/wedge that was there on S&P 500 Futures from mid july was decisively broken on 18th August and then confirmation was on 25th August. This breakdown has implications of S&P 500 at least testing the mid-july low at 1200 if not breaking it to see new lows.
Even going by Fibonacci numbers, the recent uptrend was unable to get past the 50 % retracement level of May high to July low. Yesterday an important thing happened - the recent uptrend (from mid-july to 11th August) has failed to retain the very important 61.8% retracement which was at 1242.
So, My conclusion is we should better prepare to see newer lows than to be optimistic.