As we have previously discussed, we have entered a bear market and must trade smart as the market shows it's true colors and prices fluctuate with volatility.
Displayed in this comparison are two extremely similar conditions from 2002 and present day SPY movement.
It's easy to see that movement from the left chart appears to be more stable than it is before...
This stable movement should continue. Their sheer size should be able to sustain but I doubt growth will be possible, as the consumer will do less during times of tighter budgeting (again assuming 8 - 14 months of overall bearish movement) .
Stable above 42.07 as the lowest point I expect should / could test inside the next 10 months, below this point would be...
I don't like the situation around facebook, I don't like their model and the fact they attempted to lie about it, and they are already behind the market as far as performance. They focused too much on cashing in early and didn't listen to their consumers and Instagram is pushing forward.
I have FB at 73.21 inside 6 - 8 months.
156.43 was the acceptable bottom...
The RSI indicates the potential for a bottom attempt. This TA matches the supp/res shown as 1339.7 is our pivot point in the overview. Below the 1339.7 support we would expect quick movement towards 856.2 and in the worse case parabolic movement we should expect a bottom around 695.06.
More than likely we will have movement down towards 100.46 support. With the present technicals, and our new understanding of moving averages, we are preparing for a much larger move to the downside over the next 6 - 18 months
