Wednesday, 16 May 2012

Market is heading lower....much lower

To end the day...lets conclude with the simplest of charts...

Sp'500, monthly cycle, simple' version

It is indeed a simple chart, but the trend IS clear. All the indicators are clear, they are all confirming a rollover into the summer. The natural target for this new 2-5 month down cycle would be the lower channel line (pink) of sp'1100. That is still a good 230pts lower, around 18%.

Goodnight from London