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: 

                 black

Last Week I used the Limbo Bar to establish the probable last lines in the sand and I repeat the updated chart below:

    limbo

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.

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