Stock indexes have been hot lately but not in the way that investors would like to envision them as markets slice through previous lows with ease.
- E-mini S&P 500 Index futures have lost more than 200 points in the first two months of 2009 alone, falling below 700 for the first time since 1996.
- Fundamental news from AIG to European banks to auto sales is not providing any positive news to support the stock market.
- Chances of meaningful rallies have gotten even dimmer despite Obama bailout efforts and talk about great values in the market as hope evaporates.
- VantagePoint indicators spotted the start of the latest leg downward Feb. 10 after a long, black bearish candle followed a doji candle illustrating traders’ uncertainty about price direction (red circle).
- The predicted medium-term moving average (blue line) crossed below the actual moving average (black line) and the predicted neural index dropped to 0.00 to confirm a bearish outlook, giving traders an opportunity to go short in the 820-830 area.
Source: VantagePoint Intermarket Analysis Software
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