Do u think that the triangle (from sep30 to Jan) is valid?
If yes, the S&P500 broke through the support of the triangle in Jan, should be bearish and target <800.
By fundemental point of view, the relative high P/E for S&P500, bad and worsening consumption spending(big weight to US GDP), seemed to support a lower valuation for SPX. The government bail out will trigger the problem of USD and US government debt.
Remarks:
1. the grey support line was broke through on Sep 30, followed by a huge drop, the support line seemed valid.
2. the fibonacci retracement accurately predicted the resistance at 938.1, the rebound from 741 came to an end at the 23.6% resistance and turn back down.
