Here is the SPX daily chart for July/October 1998 (LTCM forced liquidation, element missing so far is Russia default). Observe the chart similarities, although back then, we did not lose the 200 dma until later in the month. This time around, we come into option expiration week under the 200 dma. Note how they shorted it during the September bounce. I suspect we are doing that ahead of schedule. In case you are feeling a compelling urge to bottom fish, let me remind you that top to bottom, the drop was 20%. So far, we have only corrected 8%.
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on Tuesday, August 14, 2007 at 8/14/2007 10:26:00 PM.
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