Friday, March 06, 2009

S an P Support 659 and dropping, Market Capitulation?


Could we be on the edge of a market capitulation?

The S and P 500 continues to trend down with support for today in the 659 area. 659 is about 3.7 percent lower than the current S and P price as I am writing this.

A market capitulation occurs when investors surrender all hope of recouping their losses in the market--and sell in a panic.

It appears to me that we could be reaching the capitulation point. The market bears close watching today. A close around or below the 659 area would not bode well for the opening on Monday morning. On the other hand, a market capitulation is one of the few times where you can make real money in the market quickly.
clipped from charts.barchart.com
Chart for S&P 500
blog it