S&P 500: outlook for 2009

Long term basis: Yearly bearish divergence with our stochastic and MACD => 500 as a first target

On a yearly basis, a bullish parallels pattern was in progress. Next pattern (end of Q4) for our MACD will be a bearish divergence. Furthermore, our MACD will be overbought before our stochastic: a sharp decline is in progress. Below 700, the collapse in progress will amplify. 500 and LY (114) are our next supports.

On a quarterly basis, Bollinger bands spread increase. The dynamic for our 7 quarters moving average is strong and will increase for 5 periods or more. A bearish A type crossover is likely. Since the end of March 08 a bearish divergence is the status for our MACD. This is the status for our stochastic since December 2007.  The bear move is in progress as long as our stochastic is not oversold..

On a monthly basis; next month, a bearish crossover PM / MM + increase of the dynamic for UM occurred. A bearish A type crossover is in progress for our 7 / 23 months moving averages. The bear trend for our moving averages will increase until mid 2009 or +. The status for our stochastic and MACD is a bearish non-crossover. A bearish parallel pattern is in progress for some months (4 to 15?).  

 

Idea: with the yearly stochastic status, a bear trend is in progress for multi years. 

 

 

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