What is In Play Today ?
Back on September 18th of this year our daily post was “The Perfect Ending” which pointed out that the price level of 2022 on the S&P was our calculated end of the bull run from the March 2009 lows. The high on September 19 turned out to be 2019 amazingly, as forecasts seldom are that close. The market then started a 10 percent drop from there.
Subsequently the end of year Bulls took hold of the markets and proceeded to make new highs in the 2080 area. Now today the S&P is at a critical area retesting that same 2019 -2022 level. Over the next couple of trading days it will be significant to the rest of the month’s action, and more long term prospects, if this level is breached on a closing basis.
Even though the market has traded down to the 2012 area so far today, one must keep in mind from a short term perspective that the FED is meeting next week and hope by most market players that Yellen will have a backup plan may keep markets a little floppy around the 2019 level through that event.