Chartology: Trapped In A Range?

After Monday's massive selloff is it time to buy? Will the market now climb like it did last week?

That’s the question on every investor’s lips and there’s no easy answer. But for insights we turned to Natixis Bleichroeder technical analyst John Roque, he’s one of the most followed market technicians working today.

According to Roque, we are currently in a downward trend, and the de-leveraging of the market and economy is not over. Here’s why.

(.NYA) Loading...       (%)

"Although the number of new lows has dropped dramatically in the NYSE, we're not having a rally and we should be," says Roque. That suggests that environment is less about economic fundamentals and more about a de-leveraging.”

(.SPX) Loading...       (%)

Patterns in the S&P look bearish to Roque. He says, “even though the S&P had a positive divergence at its recent low, it hasn't yet moved above the downward-sloping trend line.” He thinks it could be heading to 680.

What’s the bottom line? Now is not the time to buy in; it's too soon to tell if the rebound is for real, concludes Roque. "I continue to expect negative moves. The trend is down."

But if you interpret that to mean play it short, Guy Adami has a word of caution.  “Sure the trend could be lower now, but when the snap back comes it could be fierce,” he says.

To see John Roque's entire analysis please watch the video.

FAST MONEY // Latest Rapid Recap

Go to Main Page

Current DateTime: 03:18:51 10 Feb 2012
LinksList Documentid: 26256943

• • Gene Munster Expects Apple Growth, Dividend
  • LinkedIn CEO Calms Post-Lockup Concerns
  • Anthony Scaramucci: S&P 500 Stocks Still Cheap
  • Home Builder Optimism Up, Industry Expert Says
  • Chart Patterns Suggest Pullback at Hand
  • UPDATE: Massive Trend Just Getting Underway in Financial Services: Finerman
  • Terranova: Beware Nuance Play On Apple Spike
  • Top Fashion Stocks for 2012
  • Pros Bullish On Visa, Even After It Hits a New High
  • Semantics Suggest Higher Bid Ahead for Illumina: Finerman

Current DateTime: 03:18:51 10 Feb 2012
LinksList Documentid: 26256941

• Super Traders Slideshow
• Daily Poll: Tell Us What You Think!
• Word On The Street

______________________________________________________
Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to .

Trader disclosure: On Dec. 1st, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Macke Owns (WMT), (MSFT), (UUP), (DIS); Macke Is Short (YHOO), (TM); Finerman's Firm Owns (MSFT); Finerman's Firm Is Short (IYR), (IJR), (MDY),(SPY), (IWM), (COF), (BBT), (USO), (VNO), (EQR); Finerman's Firm Owns (DSX) And Is Short (GNK); Seymour Owns (AAPL), (AA), (BAC), (F), (MER); Seygem Asset Management Is Short (EEM); Seygem Asset Management Owns (EEV)

GE Is The Parent Company Of CNBC; Charles Schwab Is A Sponsor Of "Fast Money"

CNBC.com with wires

COMMENTS

More Comments

 

« First | « Previous

Next » | Last »

Thank you for joining our discussion. Your comment has been posted.

ADD COMMENTS

Please Sign In or Register to participate.

In order to add a comment you must click here and accept our terms and conditions.

Edit Screen Name

Please sign-in/optin or register to be able to submit comments.

Remaining characters

CNBC welcomes your contribution. Please respect our community and the integrity of its participants. CNBC reserves the right to moderate and approve your comment.

Sorry, we are no longer accepting comments.

PREVIEW COMMENT

Your comments have not been posted yet.
Please review your submission to make sure you are comfortable with your entry.

Your Comments: