Investing to Wealth

We have tested the SPX 1040 level 4 times now. Finally it gave way on an intra day basis yesterday. I think the break of 1040 has opened the door to a test of 1000 at the very least. The levels to watch on the downside are 1000 and then 950. The head and shoulder pattern resolves to 860 level. The 860 level also coincides roughly with the 61.8% retracement of the rally since Mar’ 09 bottom. As for DOW, a close below 9816 level in the industrials and a close below 4038 in transports will be a confirmed Dow theory sell signal. So the levels to watch on a closing basis are SPX 1040, INDU 9816 and TRAN 4038. This market is still hanging by a thread but a close below the levels mentioned and that thread is gone.