Tuesday, March 11, 2008

S&P 500 Technicals

From Bespoke:

Based on the bounce off the January intraday lows that we are seeing today, technicals suggest a rally to the top of the downtrend line as shown in the chart below. If we can break through that downward channel, it will be a good sign for the bulls (and mark one of the prettiest double bottoms that we've seen in awhile). However, it's still important to not treat this as anything but a rally in a downtrend unless the downtrend is broken.