Posted by
john on Wednesday, December 10, 2008 11:40:46 PM
Yesterday Carter Worth, Chief Technical Analyst at Oppenheimer, appeared on Fast Money to discuss recent stock market action. Notably, he presented a 30-year chart of the S&P a la Louise Yamada. Although not nearly as negative, he acknowledged the obvious point that the S&P is bouncing along very long-term support, and that failure to hold here opens the possibility of substantial further declines.
Mr. Worth noted that the sideways trending is consistent with his training and experience. These issues (will support hold or not) don't tend to resolve themselves in short order. He expects much more trading within recent ranges before this matter resolves itself.