OK, sweet, we’ve got a tasty, nasty bear market finally cooking. So where’s the next important level of support? Well, I’ll get to that in a moment.
Yesterday, when the market had its biggest “up” day in human history, I took the very bold step of writing a post for my Gold and Diamond members and declared, via the post title, “An Argument for a Short Bounce“. In it, I declared:
To be sure, my “sweet spot” is just about 3100 on the S&P 500. But I wanted to show you the above chart to illustrate the real possibility that whatever bounce we get may not be that much more than we’ve already received.
Today’s high on the S&P 500? 3136.72, an overshoot of 1% following the emergency rate cut. It makes me feel good about the insane number of Gold members that have been signing up. I’m trying my best.
Well, since I was insane enough to make such a prediction on the biggest “up” day of literally all human history, how about I go even more insane and suggest the next major support level? Wild Ass Guess=2750 or so.
By the way, if you want to see the most awesome I Told Ya So of all time, check out the first few minutes of my tastytrade show here. I should consider being a preacher instead of a stupid chartist.