Are The Bears About Wreak Market Havoc? Or Not…

Monday March 15, 2010 — S&P 500 Today’s Open: 1,148.53

http://www.cnbc.com/id/35817439

Are the bears about to wreak market havoc? Our traders are keeping a close eye on the S&P for an important ‘tell.  And that something is… a double top formation in charts of the S&P 500.  Technical analysts consider the double top a bearish signal. And chatter is growing that this pattern may be emerging.

If you follow techincals you may know that the S&P 500 has broken through key resistance at 1,130/1,135. The next important area is 1,150-1,160, a range the market has not traded above since October 2008. Many chart watchers including Fast Money’s Guy Adami don’t expect the market to push above the 1150-1160 range — and if indeed that happens – it generates that tell-tale double top pattern.

But not everybody is negative. Certainly not John Roque of WJB Capital  — he tells the desk he’s cautiously optimistic because the S&P 400 (mid cap), the S&P 600 (small cap), the Nasdaq, the Dow Transports, and Value Line Arithmetic Indexes are all above their Jan 2010 highs.  And I think the ‘tell’ could be if the market settles above 1150 on Friday, adds Terranova. Without 1150 I don’t think we see the mutual fund Monday inflows.

Read the full article at: http://www.cnbc.com/id/35817439

Joyce Blonskij is a Registered Representative. Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Advisors, Inc., a Registered Investment Advisor. Blonskij Finl Services and Cambridge are not affiliate.

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