Monday, 28 February 2011

Tentative Sign of Longer-term Peaks in Equity Markets

Equity markets peaked five trading sessions and 1.1% higher than levels indicated in my last post.

The form that the decline in S&P500 took appears reasonably impulsive, and suggests further downside.

Shown on the daily chart below is my projection for the S&P500, which I expect to peak below the previous peak, probably later in the week. What should follow is a rapid decline, likely to very strong supports around the 1225 level.

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