MARKETS

On the daily S&P 500 Index chart, we anticipate recent strength in the index will lose momentum in the next few days as it appears to be tracing out another short term bear market rally which is a common characteristic when the market becomes oversold. 

Courtesy: econoday.com

On the daily S&P 500 Index chart, we observe a strong bear market rally that occurred in the 1st of the month as we have seen in the past.

Source: Earnings Whispers

The market shot up last week on the mediocre government reports on the hopes that a recovery may appear but today the market continues acting bearish.

Just in time for the weakest part of the calendar for equities and talk of Hindenburg Omens, double dip recessions and bond bubbles have gotten louder, putting the investment community on the alert.

On the daily S&P 500 Index chart, we continue our observation of the current head and shoulders pattern and anticipate that the index will challenge the neck line as shown with a green line.

Courtesy: econoday.com

On the daily S&P 500 Index chart, we observe and note that the index continues to trace out a classic head and shoulders pattern which has been forming since January 2010.

It is of little wonder that investors are tossing their hands up in the air when looking at investment performance or economic data, what look’s promising on the surface is fraught with danger below (like the oil spill?).