High Risk Levels

Last Thursday, a Level 1 techncial sell signal was triggered.  This year all the Level 1 sell signals have been managed away by the FED and it may happen again this week.  The Taper discussion really is not the issue for the market at this point.  What is at issue is the house of cards funny money money market base in which the majority of market players have their positions in place and the managed headline news remains positive.

How much risk is there, one Level 1 signal back in 1987 triggered over a 30 percent decline over 4 days.  If the same scenario was triggere3d now we would see the November 2011 level of the S&P at 1158 tested.