Cool or scary?

You decide:

http://www.poodwaddle.com/worldclock.swf

Prem Watsa: He has never been more bearish

DEREK DeCLOET
From Friday's Globe and Mail
November 23, 2007 at 3:58 PM EST

http://www.theglobeandmail.com/servlet/story/RTGAM.20071123.wrfairfaxmarket23/BNStory/Business/

Technical bounce?

The last time the S&P 500 broke below 1490 was on July 26th... exactly three weeks later we saw a temporary bottom on August 16th.

The S&P 500 recently broke below 1490 again on Nov 7th... exactly three weeks later = tomorrow (or Thursday if you don't count the Thanksgiving holiday).

I think today was just a technical bounce... the markets should go down again tomorrow or Thursday... if nothing else but to test the critical August 15th close of 1406 again.

If this level holds, and yesterday's 1407 low remains intact, I think there will be a year-end rally in the major indices, and we will see the S&P 500 re-test the 1560 levels by January 31st.

If, however, 1406 is violated this week, the upward trend that started in July 2006 will officially be done. Tomorrow and Thursday's action will be key.

Check the ticker for the latest...