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The Chartman

More Pain Likely in Store for Wall Street

Oh boy, that was not a good week at all for the market. And the even-worse news: I’m not sure it’s going to get any better.

Before you look at the chart below, keep in mind that technical analysis is not some kind of portable Ouija board.  I’m not looking to tell the future, but rather put the odds in our favor.  I always think of TA as being similar to the house odds in a casino.  I don’t know specifically if you play red on the roulette wheel if you’ll win or lose.  But, I do know that if you play red every time, the house will always win.  

So, with that in mind, the odds say the market will drop further.

Now, if we do see further decline, I think it’s a good idea to start lining up your buys.  One I’m looking at is American Express (AXP).  It needs to sink a bit more, but around $70, I think it’s a good bet.

One stock in the news lately is Booz Allen (BAH).  The market usually overreacts to bad news, and the stock has been trending down.  However, I think it has a good chance of rallying, and if so, look to pick up some shares on renewed strength.

Gary B. Smith joined FOX News Channel in 1999 and is currently a regular commentator on "Bulls & Bears," including his own segment called, "The Chartman."