Ian Woodward's Investing Blog

Stock 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:

custer s&p 500

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:

custer chart

The Market will have to repair a long way back before the Bulls can “Feel Good”!

                   custer boxers

Good Luck.  Ian.

Copyright © 2007-2010 Ian Woodward
Disclaimer: Commentaries on this Blog are not to be construed as recommendations to buy or sell the market and/or specific securites. The consumer of the information is responsible for their own investment decisions.