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Chartology - Retesting Bear Market Lows?

Stocks slid on Monday with the S&P 500 closing below the psychologically important 800 level. The move lower has many investors wondering if the party’s over – if now we’re headed back to the bear market lows.

Oppenheimer’s Carter Worth remains confident that the market will hold -- trading sideways near 800.

S&P 500

When analyzing patterns in this chart of the S&P Worth says, “I have no more regard for the last 10 days of strength than I do for the 10 days of weakness that preceded it.” In other words, they net each other out.

On average we’ve been chugging along around 800 (plus or minus) in the S&P -- and patterns in the charts suggest to Worth that's where we'll stay.

But for how long?

Patterns suggest to worth that the market will mimic what happened in 2002 - 2003 when it stayed at the lows for 7 or 8 months "and we've only been here for 5," he says. "The presumption is we're going to be stuck here for another 8-10 weeks!"

What’s the trade?

Worth recommends putting 3 stocks on your radar: NVIDIA , Goldcorp and PG&E . He says patterns in these charts suggest they’re carving out bottoms. I expect to see a bearish to bullish reversal, he says.

Symbol
Price
 
Change
%Change
NVDA
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Trader disclosure: On Mar. 30th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman's Firm Owns (MSFT), (RIG), (AXYS); Finerman's Firm Owns (BAC) Preferred; Finerman's Firm Is Short (IJR), (IWM), (MDY), (SPY), (USO), (BBT); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Seymour Owns (AAPL), (BAC), (FXI), (EEM), (TTM); Najarian Owns (AAPL) Call Spread; Najarian Owns (BNI) Call Spread; Najarian Owns (GS) Call Spread; Najarian Owns (HUM) Call Spread; Najarian Owns (MS) Call Spread; Najarian Owns (PALM) & (PALM) Calls; Najarian Owns (POT) Call Spread; Najarian Owns (XHB) Call Spread; Najarian Owns (RIO) Calls

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