S&P 500

May 28 -- The bulls v. bears battle continues and this morning could be very interesting. If durable goods comes in bad (which is dependent on consumer spending which isn't good, altho durable goods are much more stable than discretionary goods) and if jobless claims come in high (which might not be likely but is possible) and if new home sales come in weak or if the inventory rises, then bears may have the momentum to take the S&P 500 below and through its very strong 878 support level that its been bouncing up off of for the past weeks now. Today's fall-off on no significant news sets up for a VERY INTERESTING morning of economic data tomorrow and market reaction. Personally, I'm still a bear and expect one more dip lower and a bottom of sorts before the economy really establishes a bottom toward the end of 2009.


May 13 -- Remember that resistence barrier that the S&P struggled to break through of 875 for a while. I'm watching to see (as we return to that level) if there will be any resistence to the downside. If we break right through to the downside, then the next resistence level may not be until we get closer to 825. That would be setting up for a potential additional 8% decline.