As the S&P 500 falls another 5% today, the index is now trading at the low end of its recent triangle formation. Investors with a technical bias will be watching to see if this level holds in order to determine whether today's decline is a successful test or the beginning of another leg down.
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A similar triangle formed in the 1st quarter... First breakout was a fakeout to the upside, then reversal.
Posted by: R | October 22, 2008 at 04:40 PM
I feel like I'm watching history in the making. If the bulls don't hold the line here.... yikes. I expected this earnings season would be the saver that pulled the market up. DE, FCL, ADBE, CNX, and other big trading stocks have closed below critical technical levels today, meaning they have already started their next leg down. Tomorrow is a "must rally" day for these stocks and the index.
Posted by: ScottyB | October 22, 2008 at 05:14 PM