In addition to the posts of my colleague regarding his analysis on the NASDAQ Composite (kindly click here to see it) and Dow Jones Industrial Average (kindly click here to see it), I also want to point out something on the S&P 500/.INX/^GSPC. After months of monitoring the movement of the S&P (my previous posts about it: 1 and 2), the index has finally broken below the neckline of its head and shoulders formation yesterday. It could now be on its way to the 1,000.00 psychological level. Moreover, if it breaches the 1,000.00 psychological support, the its next downside target could be the 950.00 price mark. But if luck strikes and the index returns above the neckline, it could once again ascend and reach the 1,131.23 level.
On the side, it is important to remember that the S&P 500 is a broader measure of the US’s economy since as its name suggests, it takes into account the 500 biggest companies in the Us from different sectors. Therefore, a downturn in the index could very well lead the US’s economy itself to another bear market.