The market is at a very interesting juncture. Is the market heading lower? One of the many indicators I follow is the rising blue trendline (click on the chart to enlarge it). As long as the S&P 500 stays above it everything is ok.
How low could stocks go in the near term? My guess is they may fall another 5% to the range identified by the two red dotted lines.
Will the market break the trendline on the downside? One reliable indicator we follow is our proprietary "financial risk" indicator. If this gauge rises the market will definitely suffer a loss.
We will answer these questions in detail when we publish our Market Update for our subscribers next Sunday .
George Dagnino, PhD Editor,
The Peter Dag Portfolio.
2009 Market Timer of the Year by Timer Digest
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