S&p 1295 continued to serve as excellent resistance yesterday after being the bottom in April. If one were playing fast and nimble, a position in TZA or a few SPY puts would have paid of handsomely yesterday afternoon, in less than 24 hours.
The S&P 500 has now fallen to new lows of this selloff, and that 200 day moving average at 1262 seems like the obvious target. At minimum there should be an oversold bounce, but frankly valuation is not that bad down at those levels even in a slowing economy. If that level breaks with conviction we have a different conversation to deal with.
Believe it or not, some of the news outlets say the "market" (not sure if that means "the Dow") has not been down 6 weeks in a row since 2002. Considering the carnage in second half 2008 through February 2009 that seems hard to believe.
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows