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This is a monthly chart of the S&P 500 going back to 1993. This is major ugly. I’m looking at the 767 level (pink line) as primary support. If it breaks that, it may go all the way down to the 1994 base. I really expect it to hold around 767, but as crazy as things are, I wouldn’t count on anything right now. What bothers me is that the MACD (the graphic below the candlestick chart) is just now crossing into "over-sold" territory, implying more pain to come. We have passed the “50% bull market retracement,” so this is more than a “correction.” We are actually still in "intermediate bear market" territory. However, a violation of 767 on a monthly basis would certainly indicate a primary bear market, the kind that lasts a long time and crushes the economy.
This, more than any other single issue, will doom Republican election hopes in November.
With all of that gloomy crap said, with Ford at $2 a share and Intel at $15, my "buy" antennae is starting to twitch.
Yep, the market has gone plain silly; we have moved from the oil bubble to the bear market bubble. October can be extra bad during panics, the fiscal year for many mutual funds ends at the end of October so fund managers do portfolio tax loss sales and window dressing. Bubbles pop, time heals all. I’ve been a buyer on the way down, am still a buyer.