Down side range expansion continues--good trade opportunity

The downside range expansion continues and all systems indicate that market is going lower. You will notice the spike down to the 741 area in November. Will history repeat itself? i think to some extent it will. Traders should be on their toes for any spike below 741 overnight or early Tuesday morning.

I doubt we will see the monster rally we saw in November. But, looks good for a nice fat trade.

Complacent longs are still in the market and so far they have not capitulated. Sometime soon, very soon they are going to cry "Uncle".

clipped from charts.barchart.com

S&P Case-Shiller: Prices Fall Sharply in Q4 2007

clipped from calculatedrisk.blogspot.com S&P Case-Shiller reported that house prices fell sharply in Q4 2007. The first graph shows the Case-Shiller index since 1987. The index fell to 170.64 in Q4, from 180.31 in Q3. A decline of 5.3%, or over 20% at an annual rate. This is the lowest level for the index since Q1 2005. The second graph shows the year-over-year change in the Case-Shiller index. Prices fell 8.9% in 2007 according to Case-Shiller. The index is off 10.2% from the peak.