Reality Check - Stock Market Could Head Much Lower

The last few weeks have been good for investors as the stock market rallied. But don't become too complacent, because the future direction of prices is quite uncertain.

The price chart of the S&P 500 shows a multi-year double top (2000 and 2007) with current prices on the downside. A very bearish scenario could send prices tumbling.

No one really knows where prices will be in a week much less in a year, but I (RAH) suspect we are in for a rocky ride.

Related Articles:

Get Set for a Rocky Stock Market in 2008
Inflation-Adjusted S&P 500 Price Pattern Signals Prolonged Downside
Price Patterns - A Double Top Signals a Downside
Ugly Downsides - Avoid the Price Downside

Posted May 6, 2008.