In yesterday’s S&P market update, I said that today’s market action will be indicative of things to come; the market action today could not have been worse!

Today the market came out of the gate with the bulls controlling the floor, up almost 3%. Then the “bailout” bill passed the House, and boom, the market swings to a 1.5% loss. This weakness paints an incredibly bleak picture for the market.

Todays’ close of 1099 on the S&P 500 leaves it sitting directly on support, closing on the lows for the day. The bottom line is that this is no time to be long as values are going to get much cheaper over the comming months. I fully expect the usual December through May rally to be a very rough patch in which the market will see 6 year lows.

I’m current in the office so I can’t put together a nice chart yet, but will do so tonight. STay Tuned

Last 5 posts by Steve Warshaw

• Ford Cup With Handle Chart Pattern - November 18th, 2009
• Video: Gold Forecast November 16th, 2009 - November 17th, 2009
• Free Email Trading Course – Guest Post by Adam Hewison - November 13th, 2009
• Looks like a flat to down day on the SP, if it turns down, look out below - November 13th, 2009
• Video – Has The SP 500 Topped Out? The Technicals Say ‘Probably’ - November 13th, 2009