Stocks are down on the Chinese Riots? Really, this is the catalyst that’s going to get us a 10% correction? I am in dis belief that this is anything other than end of month profit taking. Check your calendar. Tuesday is that last business day of the month and the last business day of the quarter. 6 Days ago we had a record high. 6 days people. 17279 in the dow. We still have not taken out last Thurday’s low and that was just a 2 1/2 % correction off the top. Support below ? check out the August low at 16839. That happens to be an 8 week low. If that fails, you have 16,415 which is a 5% haircut. followed by the August 8th low at 16,143 which would take us back 5-months to the April 28th, post tax day low. A 10% haircut? That equals 15,552. Dec S&P’s? 2014.50 was posted just 2 friday’s ago, 6 trading days as well. As of this writing, we just made a new 1-month low at 1955. Downside support would be 1900 and then 1882, which was the 4-month low posted in August. A 5% correction takes us to 1913. 10% would be 1812 again this is basis December futures. The next 48 to 72 hours could produce some good technical opportunities. Keep your stops tight. Bulls make money. Bears make money. Pigs get slaughtered. Perhaps, just perhaps, we squeezed out the last bear 6 days ago. If we did, then the downside ride could be a pretty steep angle. I think this is end of month and end of quarter position squaring. However, markets are markets, and if this thing starts a steam roller of fear, keep those downside targets in mind. CER
