Get Set for a Rocky Stock Market in 2008

The S&P 500 is on the downside after making a multi-year double top (chart 1) and a short-term
double top (chart 2). This broad market index has support between 1,200 and 1,400 (green area on charts).

Currently, the SP 500 is within its multi-year upside price channel, but its support region
extends well below the lower boundary of the channel.

Investors could be in for a rocky ride during 2008.

Related Articles:

Price Patterns - A Double Top Signals a Downside
Price Patterns - Support Levels May Constrain Price Downsides
Ugly Downsides - Avoid the Price Downside

Posted January 4, 2008.