12/29/11
The Market
Technical
The S&P (1249) hit the neckline of the reverse head and shoulders (1266) and retreated. It also fell below its 200 day moving average (1259) and the very short term down trend off the October highs (1254). That puts it back into a developing pennant formation marked by 1211-1254. This pin action suggests additional down side.
GLD (151) has bounced off its 200 day moving average (157), fallen below its initial support level (153) and is about to test its 300 day moving average (150). I recently linked to an article that argued that the 300 day moving average provided the strongest support. We are about to find out if he is correct.
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