S&P (SPX)

SPX Oct 2010

The S&P, actually the , reached the perfect point today as well. The A-B-C corrective move has traced out a near perfectly symmetric pattern and has exceeded the target (see the World) calculated a week or two ago at 1144 ( the 61.8% retracement) by a relatively small fraction, and only for the second time for the past week. We will see if it holds and if it means anything at all.

The 20+ points up today was supposedly the result of the Japanese Central Bank lowering it’s rates, this time to zero. Why that is good is beyond me as they started this process 20+ years ago to no avail. Also the ISM services index was up a percent or two, barely above 50%. It was not that long ago that most of us had not even heard of this indicator, let alone assign any credibility to it.

The Russell 2000 is trading at 688, 2 points above the calculated target of 686. In the mean time the CAC, AEX and SMI are trading well below these values. Time will tell. Below is the also completing a possible wedge.

tsx oct 2010