Goldmans Analyst High

The highlight of the trading day for me was reading the following

Abby Joseph Cohen, the Goldman Sachs Group Inc. strategist
whose call for a year-end rally in U.S. stocks hasn't come true, predicted the
Standard & Poor's 500 Index will rise 14 percent by the end of next
year. Cohen, 55, says the S&P 500 will climb to a record 1,675 .. Bloomberg

Keep in mind Cohen is the crazy old lady who was recommending internet stocks in 2000-2001. She disappeared from the circuit for the next few years before appearing to resurface last year.

Its hard to see the S&P 500 climbing as companies cut earnings and financials continue taking hits. In an environment where earnings estimates are being cut, the S&P 500 is likely to trend lower.

Analysing the indices, the S&P is facing resistance at its 200 day moving average at 1484. The Dow closed below its 200 day ma of 13255 and that level may act as resistance in the coming days. 13467 and 13579 are two other levels of resistance. The Nasdaq is facing resistance at 2696 and the 50 day ma 2718. I feel the market will test its lows and possibly head even lower.