S and P 500 in Downside Range Expansion

Look out below.

clipped from allamericaninvestor.blogspot.com The S and P 500 is in a pronounced downside range expansion. The market continues to trade down below the area bounded by -2 standard deviations under the line. The line is now dropping about ten points a day, and currently picking up momentum. Until the range expansion is "rubbed off" this pattern will continue. Traders should avoid selling the market when it is at or below the -2 band (currently 1012.00). In fact, fast traders should cover shorts or go long for trades on sharps spikes below the line. A sharply lower opening on Tuesday would probably be a good short term trading opportunity -- buy. Prices under 992.50. Subscribe to All American Investor Original content Bob DeMarco, All American Investor