The market closed in a
particularly bearish manner. This was added to in the first hour of after-hours
trading where the market was trading at the equivalent of sp'1390 –
where the 200 day MA is lurking. Bears should be seeking a clear
break under the recent 1398 low, and to be trading Monday somewhere
in the 1380s..if not considerably lower.
sp'daily4 – original
bearish outlook
sp'daily7 – fib
levels
Summary
Just a brief final
update to close the day...and week.
It would appear the
original outlook is back on track, after that little disturbing foray
into the sp'1440s. We have what appears to be a classic back test of
the broken October 2011 rising support.
Two key levels to keep
in mind for early January 2013!
First warning – a
break/daily close <1398
Last warning – take
out the November 1343 low
There is arguably
nothing but empty air from 1343 down to the June low of 1266. In many
ways its the 'free money for the bears' price zone.
Have a good weekend
*there will be a
posting late Saturday, probably on the weekly index charts.