This is very dangerous...If the market is failing here, there is only support available at or near the 2002 bottom....there is a congestion zone at around 1000 and also at the 2002 bottom at 795..if that cracks, then the Second Great Depression is here...
There is a chance the market is producing wave 5 of wave 3 down, which would stop it before it got too much further down, but there is no guarantees in this market..I say that because there is a lot of positive divergence present, but that is not a signal, only a warning..
So Mark, Thursday action confirm your Great Depression II? What's your target for SPX?
ReplyDeleteI am seeing 600 before we bounce hard. Thanks
Hi Shawn,
ReplyDeleteUltimately the S&P might get down to 300-400 before the real bottom is in..It also could take a lot more time to get there, and I would still expect a rally of major proportions before the final leg down. I think the $NDX is in the congestion zone I was speaking about earlier. I think a general rally could happen at any time...
Regards,
Mark L.
Acturally, I really think the Depression is already underway..
The crazy thing to consider is that a 40% rally off the bottom only puts us to 1,040 on the S&P now!
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