In a volatile, uncertain time, investors are searching for guidance without ceasing what might come next. BW offers some places they might want to contemplate

By Ben Steverman

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As U.S. stocks hit new 11-year lows on Nov. 20, multiplied investors say they good don’t know what’s ahead.

There’sitting a general lack of clarity on a wide range of issues—the declare of the U.S. and global economies, problems in the confide in markets, the plans of the federal government, and the death of hedge funds that are being forced to sell off assets. Unfortunately, much of the fog of the financial crisis will not be cleared up anytime soon.

However, there are several key signals that traders, strategists, and foundation managers typically not lose sight of closely in times of uncertainty. Given the unprecedented environment, it’s not sharp granting that any will have being a reliable guide this particular period, but these signals do accord. investors something to monitor for clues to the road in opposition.

Here’s a criticise of five of those signals and which they’re saying now:

1. Technical Signals

Technical strategists analyze and predict market action based on previous market moves. This week, the stock market failed a key test: The broad Standard & Poor’s 500-stock index not singly fell below its October 2008 lows, but the big-cap benchmark also blasted below its lows during the nasty bear market of 2002.

On the forenoon of Nov. 20, the S&P 500 in short tested these 2002 lows in the first blush of the morning but then rebounded. But late in the day, stocks sank and the S&P 500 closed at 752.44. That’s below the index’s October 2002 low of 768.63 and the lowest demolish for the index since April 1997.

The 2002 lows are "a major support level," says Dave Rovelli, equity merchant at Canaccord Adams.

Richard Sparks of Schaeffer’s Investment Research says "you could see a cascade of selling" if stocks supporter way below those precursory lows. Before shares hem to this aim, population could "feel comfortable that that is a basement that the market efficiency not mode below."

2. Reports from Washington

Michael Yoshikami of YCMNET Advisors criticizes "a general lack of clarity from the Administration [and] federal agencies on what’s happening and what the passage out is."

On Nov. 20, Democratic congressional leaders said they would postpone a vote on a bill to assistance the U.S. auto industry—efforts more Republicans have antagonistic—until December. U.S. Treasury Secretary Henry Paulson has raised eyebrows by the agency of changing the focus of the financial package a few times. Bush Administration officials are in continuance their way out of office, but President-elect Barack Obama hasn’t yet chosen his economic team, whose members would have no actual power until Jan. 20 even if they were in place.

This flow of news from Washington is rattling investors, many market watchers say. "No one really has a good idea that which the plan really is," says Bruce Bittles, chief investment strategist at R.W. Baird.

Chad Deakins, portfolio conductor at RidgeWorth International Equity Fund (SCIIX), says he doesn’t expect any unmixed signals from Washington to the time when Obama takes office. "Until the new Administration comes to the White House and sets a tone and direction, it’s hard to see strong upside in the equity markets," Deakins says.

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