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By Mike Paulenoff, www.MPTrader.com
The very big picture of the S&P 500 chart -- (AMEX: SPY) for traders of the ETF -- shows the making of a giant double-top pattern that could be on the verge of downside acceleration that breaks the January low at 1270 and begins to fulfill its "natural potential" on the way towards a revisit of the 2002 low. Yes, that is an extreme forecast, but that is the look that this pattern exhibits. No, it will not happen in a straight line, and more than likely any decline in the SPX that violates the January 2008 low at 1270 will find support at the 50% support area of the entire 2002-2007 bull move, which is at 1174.00. Be that as it may, this is a very ominous longer-term chart picture.
Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!
