SPX technical outlook

So far no surprises – as expected the 850 area served as the support for the last two weeks and window dressing drove market ts higher the last days. The SPX should test the 920-40 area and drop from there to 815 at least but rather make a new low in the Jan /Feb time-frame. Followed by another short covering rally turning into a prolonged drop in the 2nd half of 2009 towards 600. All the FED can do is to print money and or produce bubble’s by buying up bonds. That’s anyway a charade as no one can really benefit from lower rates in main street terms and that’s where the pain will be going forward.

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~ by behindthematrix on December 31, 2008.

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