The newest sport seems to be bear hunting the stock indexes. The S&P Futures already blew through the 62% retracement and then some last week. today’s low at 1918 gives us a double bottom there. since its only 10:17 its anyone’s guess if that holds. If it fails the next support on the charts is 1915, then 19.00 Moving over the the Dow. Today we got the 62% RT of the 1100 point rally which began in August. for now its a 4% correction off the highs in the Dow and approaching a 5% correction. Sentiment seems bound and determined to lean on this market. So far, it looks like February where we got a 6 to 7% correction, then analysts started talking about S&P’s at 1800. We promptly turned around and buried those bears with a tasty grinding rally. Like I said, apparently the new media sport it talking up world wide slow down. I hate to take my investment advice from the IMF, but folks are falling all over themselves trying to call the top here. Maybe they are right. We have tripled off of the lows in 2010 Panic. We did have the Fed punchbowl open for the last 5 years. Now that’s ending, although there is no sign the fed is going to start jacking up rates yet. All in all this feels more like a correction than the beginning of the end. The herd is spooked. That’s a fact. But is it spooked enough to jump off the cliff like lemmings? It doesn’t feel like it, but that’s just my opinion. CER
