S&P is headed down, but stimulus may provide a temporary bounce
I expect the S&P to plummet to the one-thousands as part of the fastest bear market in history, given the unprecedented shutting down of the world economy.
The biggest catalyst for a bounce should be the stimulus package from Congress, whose benefit will be short lived and will likely mark a reversal of the insane strength of the dollar.
Once approved though, this market has the potential to rally like crazy for no reason at all until the 2,600s (0.5, more likely) or even the 2,800s (0.618).
Once these targets are reached, the unemployment numbers, bankruptcies, fund blowups and general free fall of trade will bring the market to reconsider and we will fall again towards the lower areas of support.
If we breach 1,500s on the way down, watch out for the 8-990s and in the worst case scenario for the Number of the Beast, but here we are talking about a really extreme scenario.
The biggest catalyst for a bounce should be the stimulus package from Congress, whose benefit will be short lived and will likely mark a reversal of the insane strength of the dollar.
Once approved though, this market has the potential to rally like crazy for no reason at all until the 2,600s (0.5, more likely) or even the 2,800s (0.618).
Once these targets are reached, the unemployment numbers, bankruptcies, fund blowups and general free fall of trade will bring the market to reconsider and we will fall again towards the lower areas of support.
If we breach 1,500s on the way down, watch out for the 8-990s and in the worst case scenario for the Number of the Beast, but here we are talking about a really extreme scenario.