I was waiting to see if SPX will hold the close on weekly basis above 1130. It did not. So I have to say that this means more down for S&P500 in the next month or two. We will go up and down but general trend will continue down for some time. We need to repair the damage but falling has to stop first. My targets on the downside are: 1100, 1080, 1066, 1044, 1040, 1030, 1020, 1011, 1007, 993, 980, 956, and 943.
It is very scary to think we are going there, but we could if economic, political, and corporate news continue to be as ugly as they are now. We will get more downward revisions for economy and earnings, besides more bad news on sovereign debt. Protect yourself on the downside and be ready for wild snapbacks on better than expected news. Be safe...
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