The Stock Market Trend is Down - 5 October 2011

The S&P 500 just crossed its "line in the sand"...

WOAH! The S&P 500 didn't just walk over the "line in the sand" yesterday. It jumped over and landed on its head, writes Brian Hunt for Steve Sjuggerud's Daily Wealth.

We noted last week how 1,119 on the benchmark S&P 500 stock index was an important level to watch. This was the lowest point stocks reached during the early-August panic. It was the bottom of the "box" the S&P formed during September. 

In Monday's rough trading session, the S&P 500 fell 2.9% to reach a new 52-week low. It crossed the line. 

Could stocks stage a big year-end rally, like some analysts are predicting? Sure...but we'd need to see the market "confirm" this thesis by climbing back into the box...and shooting past the 1,200 level. Until then, caution should rule the day. The stock market trend is down.

Considering a Gold Investment?...

Steve Sjuggerud, 05 Oct '11
  • Reddit
  • Facebook
  • Twitter
  • Google
  • Yahoo
  • LinkedIn
Former stock-broker, mutual-fund vice-president and hedge-fund advisor Dr. Steve Sjuggerud is the founder and editor of True Wealth. Launched in 2001 and now one of America's best-followed newsletters for private investors, True Wealth also provides free analysis and ideas in the Daily Wealth email service.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News, RSS links are shown there.