A HAPPY NEW YEAR to all! Wishing good health, happiness and smooth trading in 2008.
Trading volume should start picking up and with that, let's take a look at the S&P 500 chart. The blue dotted line in the chart above outlined the triangle formation in S&P 500. This lower highs and higher lows pattern is especially obvious in S&P500 and DOW. This neutral pattern signals a breakout in either direction to come. If there is any clue on the direction of breakout, right now there is a bearish bias as both of these indices closed below all three moving averages: 20D, 50D, 200D. Let's see where the market wants to take it when the traders are back in full force. Wed: Construction Spending, ISM Index, FOMC Minutes