In one of my recent posts I commented that the market could attempt a rally back to 2050 for the S & P 500 and this was almost accomplished with a run back to 2020. I now looks like we will be retesting the August lows around the 1870 level. If we have a successful test then we should see another attempt to rally. This would increase the downside price objective for the S & P 500.
“My long term price objective remains at 1760 and 1400. When these objectives will be reached is anybodies guess. The Fed has been successfully manipulating the markets for a time. Remember world banks have been buying stocks, which had been an unusual occurrence until the last few years.
So, yes I’ve been advocating being protective of your investments. Only time will tell if the Fed will act to shore up the markets. If they don’t then the markets free-fall may just be beginning. If they are successful in stopping the hemorrhaging then I believe that they will be just delaying the inevitable.”
If we fail to hold the 1870 then we can look for a move to the 1630-1690 area of the S & P 500. A lot of damage have been done to individual stock prices and the damage seems to be spreading.
All is not well, I still recommend tight sell stops for your positions. If you had heeded my advice back in June or even earlier you would not have to be worried about your positions, you would be out in most cases.
Remember to look at my last post