Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Saturday, May 16, 2009

A Good Clue to Where Market is Heading

S & P Index for 12 months. If you draw the long term downtrend line, you'll see the S&P has failed to breakout above the said trend line and is beginning to pulled back. If you do a Fibonaccii retracement of 50%, it's going to the S&P to 800 level. Or it could go lower to Fibo 68% and take a breather at 750 mark.
Still can't read direction of the market.? Don't worry. Just ask your child where the blue line on the graph is heading..
I sold of 80% of my holdings in the stock market during the last three days, with each day registering less gain. Now that's telling me things.......
To buy..? I'll wait for the S & P to do a double bottom within 6 months and buy around October to December.

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