Forex Investment and Currency Trading

S&P 500: The index posted a weekly close below the March ’07 low (1,256) which again confirms that the trend is down. Further losses are expected and the chart setup is beginning to look similar to that seen into February 2001. Then, after an initial fall lower, the S&P bounced from 1,254 before falling again a closing below that support on a weekly close basis in the 2nd half of February. Within 4 weeks the fall had accelerated to a low of 1,081. This time around, after peaking at similar levels to 2000 the
S&P 500 fell to 1,257 before bouncing and has now breached the March low. Accelerated losses in the days and weeks could be the danger.