Securities Research Services

Tuesday, August 26, 2008

Market Once Again at the Brink

Stocks turned lower again after Friday’s one day short squeeze. Note that the bottom B-Band turned sharply lower over the past two days, as did the 50-week average.

We are likely to get more short squeezes along the way down, but it is clear that this market remains in a long term downtrend.

SPY has support at $126.25. If this level gives way, and it looks more and more like a strong probability, then a retest of $120 would be the most likely target.

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