SPX – what if

What if the US went “over the cliff”? Put it this way, neither side wants to be seen agreeing outright & giving in. Geithner has his bungee cord ready.

So let the charts do the talking: the SNP500 could be forming a mid term HNS, and right shoulder complete target is about 1300, which happens to be at about the converging 200WMA.  This is would be a very negative result as it would be breaking the long term rising support formed since 2009. Many individual stocks are still setting up for more upside as seen with 63% of SNP500 stocks above their 50DMA, & peak is >80%, but their rallies could be derailed by what happens this year end.

SPX 071212

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