SPX breakdown
Today saw an almost a 60 point price swing for SPX (S&P 500). In light of that, the next support below 1200 is only a stone's throw away. The October 2005 low was 1168.20, 50% of the entire bull market is at 1172.85. Obviously, that zone will have to hold or we would be staring at the next cluster of support between 1090 and 1120. But let's not get too carried away and feed more panic into the already pumped up collective heartbeat. NDX is also getting near the March gaps (see earlier posts) and support should start firming especially given the elevated bearish drumbeat out there. In other words, a hit of either QQQQ 41.50 or SPX 1170 should give us a great opportunity provided we don't slice through the levels. Anyone who has traded through times like this knows how quickly we get back to the levels where panic started. It sometimes only takes two days in a bear market rally to negate two weeks of selling. So buy time when it comes and you will be fine. We have been day trading this mess, but the time to invest is approaching. I will be shorting some of this, but it will only be quick scalps. Do not lose sight of the fact that this is a presidential election year.
This entry was posted
on Monday, September 15, 2008 at 9/15/2008 06:34:00 PM.
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