Thursday, November 15, 2012

Big support line at S&P 1310

The S&P 500 index is declining towards a long-term rising trend line that goes back to the 2009 low.

The support line presently lies around 1310.  If the S&P falls below this level, it will be a strong indicator that the multi-year rally is over.

Wednesday, November 14, 2012

Market correction: 9% and counting

So far the price movements of the S&P 500 index are consistent with a simple short-term correction.  There was no crash-predicting signal at the September-October top, and there's no indication (yet) that this is a bear market.

Longer term indicators, however, are pretty bearish.  Even if this current correction proves to be short-lived and the market resumes rallying, the only thing that might encourage me to get back into the market would be the threat of hyperinflation.

Wednesday, November 07, 2012

Update

First Marxist president is re-elected for another four years.

Stock market tanks the next day.