If you decided to follow media's coverage of financial market this weekend, you would think that the world is literally about to end. Zerohedge showed a slide presentation (by macro investment newsletter) about how the financial world ends in 2013. All media widely covered George Soros's speech on how Eurozone has three months (probably the time his put options expire) to fix its problems, or it will cease to exist. CNBC is airing "Markets in Turmoil" weekend special. All of the above should scare any investor into prolonged hiding in the basement full of non-perishable foods.
Dear readers, SPX is down 10% or 144 points from this year's top. Do you think that market did not know?
I hear a lot of traders mention how this year is a carbon copy of the last, and they are correct so far. A detailed comparison, which I put together on the following chart, reveals why SPX may be about to bounce and deliver a surprising blow to complacent shorts, and only after that to resume its downward path of wealth destruction about a month from now.
Study charts and turn a deaf ear to media hype.
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| click on chart to enlarge |
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