The market hit S&P 666 on Friday and took a strong bounce upward. That bounce carried over into the after-hours and now has faded. So how strong is the 666 line?
Here's an overview chart showing the 666 line both when things were coming up and now coming down
S&P 500 Monthly Chart 1990-2009
and here's how it looks close up:
S&P 500 - Daily Chart 1996
The market climbed steadily throughout 1995 - it hit the S&P 666 area and stalled for about 7 months before steadily climbing again until the 1998 troubles. 666 acted both as important resistance going up and then an important base for a long rally once it was cleared.
So will it work the same way coming down? It certainly gave that impression on Friday.
So keep an eye on 666 going forward. If it can't break 666 going down, then the long ETFs will be the place to be. But if it can't break 700 and 726 and 741 going up, then the inverse ETFs will be the play. We may have a couple of days of indecision while the market makes up its mind. Stay tuned.