Index: S & P 500
Short Term Trend
Last indicator = SELL @ 1357 level on 23/7/1999.
Trend still down - Since signal date by 4.5%.
Guides:
Black = Index showing BUY/SELL Arrows
Red
= 100 Day Moving Average
Blue
= 200 Day Moving Average
Magenta = Trend Channel
Observations
1. The sell indicator of 23/7/1999 is still in place.
2. The index has penetrated its 200 day moving average which may portray further falls and the Oct '98 up trend has broken.
3. There should be support at the 1250 level.
Long Term Trend
Observations
1. The long term up trend commenced in 1982 and is in it's 18th year.
2. The 1995 breakout has the appearance of becoming parabolic.
3. In the short term the overbought position of July '99 has been unwound.
Conclusion
1. The downtrend signaled @ 23/7/99 continues, although the index may be approaching a BUY signal.
2. Either await the e-mail alert and indicator change or start accumulating at this level.
3. The S&P 500, increasingly influenced by the technology sector, is looking very overstretched on fundamentals. The index could fall by 50% and still be in a long term up trend.
