Well, it's an eerily quiet day, and I don't have a lot to talk about, so I thought I'd just share a couple of long-term fan studies on the S&P and let this post sit here until the close.
These fan lines are drawn in ProphetCharts on the S&P 500.
One set starts on June 30, 1932 and ends on March 24, 2000.
The other set starts July 8, 1932 and ends on October 11, 2007.
The ability of these lines to act as support and resistance over the decades has been stunning. I also find them to be very valuable on a going-forward basis.
Looking at the chart below, it seems to me a reasonable target before the end of 2011 would be a low somewhat higher than the October 2008 low. If there is a real sea-change in the world's economy, the next major drop could take us into the mid-400s.