Here is the SPX daily chart since the end of 2008. Have a look at 1050 and initially be prepared for a marginal break before any decent bounce. You see, any break will get the lemming technicians telling everyone that more downside is assured. Then and only then can a bounce develop.
But ultimately, look at 950, which is a 50% retracement of the entire move from trough to peak and a test of the primary breakout.
Thesis confirmed…
Comments »Senate passed the bill that was driving everyone crazy. When they write the history books, you’ll know that it wasn’t about the Eurotrash. It was a battle royal over the rulebook. In the end, it won’t matter anyway because wall street always finds a way to kill the goose that lays the golden eggs.
The doomed Euro is flying and gold is getting squashed. Our friends at Maiden Lane are busy tonight…
“They” will soon be saying that “its not all that bad” as they explain why we made back today’s losses by the close on Monday…
ps. Damn, Fly. That VXX was the sweetest trade of the year, bar none…Enjoy your cow…
Comments »The sooner this Financial Reform bill is passed, the faster we can get past this misery. It really doesn’t matter what it says, it just needs to be finished…and as soon as its done, watch the selling dry up…
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