December 21, 2008- Market Summary
In our previous report, we mentioned that the major indexes, such as the S&P 500, have started to rebound off their recent lows. We noted that each of the indexes have retraced toward the resistance of their respective 50-day moving averages. As you can see from the charts below, the nearby resistance gives us reason to believe that it isn't time to bet on a reversal quite yet. The bulls continued to struggle, sending the indexes above the medium-term moving average, which is why a period of sideways price movement, like what we've seen over the past couple of weeks, is common in a strong trend. The weakening fundamental and economic data from across the globe makes it extremely difficult for anyone to predict how long buying pressure will last, but this could be a period ofconsolidation before the bears send the markets lower again.
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