So far no suprises - as expected the 850 area served as the support for the last two weeks and window dressing drove market ts higher the last days. The SPX should test the 920-40 area and drop from there to 815 at least but rather make a new low in the Jan /Feb time-frame. Followed by another short covering rally turning into a prolonged drop in the 2nd half of 2009 towards 600. All the FED can do is to print money and or produce bubble's by buying up bonds. That's anyway a charade as no one can really benefit from lower rates in main street terms and that's where the pain will be going forward.
Wednesday, December 31, 2008
SPX technical outlook
So far no suprises - as expected the 850 area served as the support for the last two weeks and window dressing drove market ts higher the last days. The SPX should test the 920-40 area and drop from there to 815 at least but rather make a new low in the Jan /Feb time-frame. Followed by another short covering rally turning into a prolonged drop in the 2nd half of 2009 towards 600. All the FED can do is to print money and or produce bubble's by buying up bonds. That's anyway a charade as no one can really benefit from lower rates in main street terms and that's where the pain will be going forward.
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