Monday, August 8, 2011

Maybe S&P 1125 is in Play Soon After All

I didn't think we'd be talking about S&P 1125 level so soon, but with 1170 broken earlier today and 1150 just breaking it is time to bring it up.  This is the area of August 2010 highs and a complete and utter rejection of QE2 from its first conception at Jackson Hole, Wyoming.  Amazing how quickly you can waste $600 billion...

Obviously we are incredibly oversold, I'd imagine at the worst levels in almost every reading since March 2009 and when this snapback rally happens its going to be immense even if it only takes back 1/3rd to 1/2 of the downward move.  But we're still not there in terms of finding that bottom for even a bounce.

EDIT 1:50 PM - 1142 on S&P 500, and we are closing in on two -5% days out of three if things don't change in the last 2 hours of the session.

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