Every news reporter is talking about how bad the markets are, while market technicians have been waiting for the S&P500 to simply reach the bottom of its monthly channel!

The S&P500 reached the trendline of the lower channel on the monthly chart yesterday, January 18, 2008. It was tested THREE times already in April 2005, October 2005 and July of 2006. From there we shot higher and finally we are bad down. I bet you that once the market starts to go up all of these gloomy days will start sailing again. The information on the news gives us no information of what investors should do, only what happened.

Well, we have foresight - the Charts! The Charts tell us that is this monthly chart fails below $1325.99 then there is little chart support left, and we should exit the market and prepare for a recession; however, there is no threat of a recession, the only thing that is going on is a GAME that is being play with support and resistance! Forget about what the news is saying.

The market has reached a bottom area ranging from $1326.70 to $1355.73. This will be a real BULL MARKET again. When we do go up from here, the financial sector will stabilize and start moving up! It is time to catch the bottom. I am in SPY (the S&P500 ETF) and PEY, an ETF that pays just over a 9% dividend per month; it contains 60% of the financial sector stocks that are high quality companies that consistently raise their dividend every year.