S&P500: The Bear Returns in Jan 2010

No better way to start the blog than this:



While most of the world is busy talking about recovery, the S&P500 has spoken with a critical break of the trendline(red) which contained the uptrend from the lows of March 2009. There will be a short rebound as the price meets the support of the small trendline(blue), but eventually we are headed for the 960-980 range as a minimum, which is the 38.2% retrace of the whole uptrend.

As we zig zag on the way down, there will form more trendlines upon which i will base my forecast. For now though, watch out below!