Technical Trading Indicators Predict That The Stock Market Rally Won’t Last

by The Smarter Wallet on March 31, 2009

We share a stock market prediction based on some technical indicators.

Rebalancing Our Investment Portfolio

I’ve been keeping a close eye on the stock market lately since I’ve been guilty of doing a little market timing (just a little!) with some of the funds we have available for rebalancing our investment portfolio. We have a pretty lopsided portfolio right now since our stock allocation diminished from a 60% position to a 50% position, while our liquid assets comprised of bonds and cash shifted from 40% to 50% of our overall allocation.

So to get things back to our usual 60%/40% (in favor of stocks) from a 50%/50% position, we need to move some of our cash over back to stocks (or put in new savings towards equities). Typically, I’d do this by trying to dollar cost average, but a part of me would like to try out a little stock market technical analysis and see if I can learn something by studying some charting techniques.

Yes, you may say that market timing shouldn’t be done, but I feel that we have room here to play with these ideas since the market is presently at very low levels. There’s a lot of backing and filling going on with the stock market right now so I’m not concerned that I’ll be left behind by a big bull run or upward push. I’m anticipating a revisit back to the previous lows somewhere around 670 for the S & P index. But of course, there are no guarantees — we can only make suppositions based on probability.

What Are Technical Trading Indicators Telling Us?

I dare to make these calls based on some information and strategies offered by, my source for educational materials in the trading and investment realm. Just a week or so ago, we published an INO video about the S & P index and crude oil market trends. During that analysis, the stock market “experts” from INO offered an analysis that suggested that the S & P will retest market lows. They used a Fibonacci retracement process to predict this potential downward trend with the S & P.

But as we have seen during the last few days, the S & P bucked that trend and instead headed upwards. Here is a new video about the recent rally we’re seeing in the stock market and more interesting discussion about the S & P index at this juncture:

Will This Stock Market Rally Fizzle Out?

Click this link or the image to watch this video called “Is This Rally In The S & P 500 For Real?”

S & P index rally

As you can see, INO’s Market Club charting tool demonstrates its features in the video above (I found the voice feature or what they call their “talking chart technology” as pretty cool). The S & P stock chart analysis here shows that there is some significant risk in this rally and that there could be resistance at the 839 level. And so far, this prediction of a resistance and a subsequent downward trend (made just last week) seem to be holding true as the index slipped to 788 today.

I’m highly interested in seeing how the plight of this market unfolds and whether the interpretations and analysis that are made through the INO Market Club charting tool can be gauged as accurate.

If you’re interested in trying out INO’s free services and tools, you can subscribe to receive trend analysis reports on your stocks or watch investing and trading videos at INO TV Free. They’re tools and resources that are available at no cost, and can give you some insight on how the stock market works.

Here are a few more related links that showcase INO’s investment videos:

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{ 1 comment… read it below or add one }

1 Johanne April 1, 2009 at 1:09 am

Thanks for the heads up.

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