Ian Woodward's Investing BlogStock Market at Custer’s Last Stand?
When we reach a critical point in the Market, it is important to understand where the Lines in the Sand are at, and we are probably at Custer’s Last Stand:
Last Week I used the Limbo Bar to establish the probable last lines in the sand and I repeat the updated chart below:
There is little doubt that the Bears are in Control as shown by the S&P 500 Chart:
We have already dropped ~12% from the High of the S&P 500 so we are into an Intermediate Correction of 12 to 16%. I show the Limbo Bar lines on the next chart along with the Fibonacci Line at 38.2% for 1006, so naturally 1000 is a good place to watch if the other two do not hold. If that breaks we are into a Bear Market Correction:
The Market will have to repair a long way back before the Bulls can “Feel Good”!
Good Luck. Ian.
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