Well, the 20 day moving average that was supporting the S&P 500 stopped acting as support today. The index dropped 8 points today. The bullish crossover that I had hoped for did not materialize.
The next support that I would cling to as a long would be the 850 level in the index. I’m not hopeful this time around. It may need to dip to the 825 level before taking another shot at the 50 day moving average.
If the market gets below 825, then watch the November low b/c that is all the support we have left. I’ve been of the opinion that we will see the ultimate market low below the November low. I did not expect it before Obama was sworn in! I really did think we would see a nice rally into that.
Oh well. I’m not the best at calling them am I?
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