[Page is FILLED with charts for those of you that like graph porn]
We’re crashing! Just look at this chart, from “Chart of the Day”:
See – over there at the right, on top, at the end – do you see it? We’re totally crashing. It’s all over and it’s OBAMA’s FAULT!
That’s what I learned this weekend from the Financial Media. While we failed to break out over the top of the uptrending channel dating back to early 2009, I still think all the doom and gloom forecasts are largely noise.
Yes, we may drop back to 1,200 on the S&P because that’s the range we are currently in. But there won’t be any reason to worry unless we fall MORE THAN 20%. The trick is to be prepared for the possible drop and to be ready to do a little bottom-fishing while everyone else is losing their heads.
If, on the other hand, the S&P bounces off of 1,400 or even our Must Hold line at 1,360 – then we still have the possibility of breaking UP – out of that long-term channel and back over 1,500 – maybe even to 1,600.