Stock Market Analysis for August 6th

There is a Federal Reserve meeting next week so expect an increase in daily volatility in the major averages. Meanwhile if we take a look at a longer term chart of the S&P 500 so far it's acting similar to what occurred in the Spring and Summer of 2004. Back in 2004 the S&P 500 peaked in March and then developed a similar potential Double Bottom pattern. However the S&P 500 then stalled out in June which was eventually followed by more selling pressure before the real bottom occurred in August (points A to B). Thus it will be interesting to see if the S&P 500 takes a similar path in the weeks ahead.













Our complete Stock Market Analysis can be found at
http://www.amateur-investors.com/Weekend_Market_Analysis_Aug_5_06.htm