Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Wednesday, August 01, 2007

The Devil's Intersection

If you read my Money and Markets column today, you saw my chart on the S&P 500 that is very bearish.
While that was a bearish monthly signal, we need confirmation. So I kept watching another S&P chart today. It has what I call "The Devil's Intersection" -- a make-or-break conjunction of trend line and price support ...

If the S&P (here represented by the SPY) breaks below the intersection of those lines, I would put on short positions. But so far, it has held.

However, it's not like we've seen a strong rally that would reverse the bearish outlook. So for now, it's best to wait, in my opinion. I have my targets picked for when I get a stronger signal either way.
Check out my new gold and energy blog at