guttersnipe

S&P 500 at 600: Is It Possible?

If the SPX 500 goes to 600, it will likely do so on the way to much lower levels. Take a look at the long term chart for the SPX 500. Notice the double top formed at about 1500 in 2000 and 2008. Notice the intermediate bottom at around 780. If this 780 level gets breached in a sustained way, that will be a VERY negative technical signal. Double tops are one of the most reliable and bearish technical signals out there. Breaking the intermediate bottom is a signal for much lower levels to come.

Is the Worst Over? Let's Keep Our Options Open

800 ish is a pretty significant point for the SPX. A break below this level would confirm a secular double top with pretty terrible implications for the future. This might be one reason for the dramatic bounce from this level. Let's hope it holds.