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

Technician Forecasts 600 Market Bottom for S and P 500 Index

Do we have a tech "guru" in the house. How about a Gann expert?

I didn't actually hear this first hand, I read it on the Internet.

A technician at Credit Suisse is forecasting a market bottom for the S and P 500 with a target price of 600-605.

I took a look at the market and I can see where he is getting this. Back in 1995 after breaking the 600 level for the first time the S and P went back and forth against that level for about a year and a half. Looking at the chart, 650 also looks like a formidable area. We could hit either or both of these areas this week.

I can't find my tech "guru" but 603 also looks like a Fibonacci number and a possible reversal point.

Do we have a tech "guru" in the house? How about a Gann expert?

What do you think?

I picked up this thread on Across the Curve.

clipped from charts.barchart.com

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Bob DeMarco is a citizen journalist, blogger, and Caregiver. In addition to being an experienced writer he taught at the University of Georgia , was an Asociate Director and Limited Partner at Bear Stearns, was CEO of IP Group, and is a mentor. Bob currently resides in Delray Beach, FL where he cares for his mother, Dorothy, who suffers from Alzheimer's disease. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. His content has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, BlogCritics, and a growing list of newspaper websites (15). Bob is actively seeking syndication and writing assignments.

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