After the continuous wait of
almost 20 months S&P now seems ripe for a fall. In all my previous updates of last 20 months I
have maintained a bearish view on the index. The direction of the move was
pretty evident from the charts however the timings were not. But now it seems
that everything has resolved and markets have made their mind to correct
sharply.
If we look at the first chart we
can see that S&P has clearly broken out of the channel and now and should
be in a free fall below 2040 and 1980 levels.
In the second chart we can see
the retracement levels for S&P500 are at 1836, 1651 and 1502 level. I think
this time we are going to see a deeper cut in the index. This is collaborated
by the charts of global market index most of which are looking extremely bearish.
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