Hello BBTL Blog followers,
The general equity markets were nervous today, as we sit on top of the Autumn Equinox. Fall brings changes not just to the weather, but also the financial markets.
While some will see change as bad or risky, other see change as opportunity.
We think changing times and assessing risk versus reward in your investments, is a very fitting truism indicative of the financial markets in 2010 - and as this is written.
As far as the all important SP500 Index, a bellwether for stocks, the index dropped below the all important 1130 support price level, and secondly, was not able to hold the 61.8%R (around the 1140 level) from the April 26, 2010 SP500 high (about 1219).
For now, one day is insufficient to fully confirm a short-term TREND CHANGE to down.
Thus for now our official short-term trend is still up, but any weak close or any volume break below SP500 1115 tomorrow - serves as immediate confirmation.
Assuming that does happens (a ST trend change to down), we expect the trend down to be fairly weak and last until the end of September.
A break below 1100 on the SP500 would make us more bearish until later in October, but for now, we are still very much in favor of higher markets at least until later this year.
Attached is a chart from our paid subscribers site, with our usual KRTT mark-up comments.
We will attempt to confirm the new short-term down-trend alert as valid or invalid in the next two trading sessions.
Regards,
James Kelly Sr.
Editor in Chief
The KRTT TEAM
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