SPX has 8 Gaps which are unfilled. which goes right upto 2300. MIcro factors on economy might be strong. but there is something else cooking underneath the ground like Geo political/Financial underlying assumptions.
with a weak Leadership in US and challenges coming from Europe, Russia and china the being bear should pay in mid term.
This is just a theses and Must let you know this is just gut feeling and not an assessment.
On the other side of the coin the economy is facing only challenge of supply chain and FED sucking up liquidity. both of them combined does not warrant more than 25% correction. but again seating on cash will help in long run.
July 15, 2009 @ 910 points, 81.25% pullback if it hits that. I don't think so tho.
Nilesh_Khedkar
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I agree , this is something which is to keep tap on . Without confirmation position should not be taken
Unknowinglysexy
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The real question is, do all gaps need to be filled? Google and Amazon are in the same position as SPX. 2300 seems catastrophic, but anything is possible!