Wednesday, September 21, 2005

Another Thought on the S&P


After I wrote the last post I realized that there is in fact a well defined downtrend box nearly 20 points wide in the December S&P. This box is delimited by the blue lines on the chart above and the bottom of the second box in the downtrend is at 1211.

I think the market will make a low above the Katrina low (1194 electronic and 1202 pit) so I am leaning towards the view that the low will occur at 1211 rather than 1202 for this reason.

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