Wire: BLOOMBERG News (BN) Date: Jul 7 2009 14:46:13
S&P 500 May Fall 9% During Earnings Season: Technical Analysis
By Rita Nazareth
July 7 (Bloomberg) -- The Standard & Poor’s 500 Index may
retreat about 9 percent during the two-month second-quarter
earnings season that begins tomorrow, according to
Schaeffer’s Investment Research.
Should the S&P 500 fall below 882.88 points, the slide may
be followed by a drop to about 820, completing a so-called
“head-and-shoulders” pattern, said Ryan Detrick, the senior
technical analyst at Schaeffer’s. The left shoulder and head
were formed when the S&P 500 climbed to a high, retreated and
then rose to a higher peak. The right shoulder would be
completed should the index, which sank to a trough and rallied,
fall to a new low.
