How Bulls Function
The past week we have heard a lot about where the bottom in the market will occur. That is an important factor in the “Bull” scenario, i.e. “where to buy”. that is much more important to a Bull than “Where to Sell” . This is because the core to the Bull syndrome is that Politics will always point to a Washington that wants higher and higher markets rather than a Washington that will allow an Economic Cycle to run its course. A true “Free Market” will reward players who have balanced risk / reward endeavors, while an “artificial market” will reward players with biased risk parameters to the upside. Busts are then the result.
So Now Where are We ?
To date there have not been levels reached that would indicate from the charts an area of good support. We have mentioned the July 2015 area around 2125 on the S&P as a logical first stop although the August 2016 area around 2193 could be another choice. As always there could be good trading bounces from other areas, we will be watching for panic and VIX indications of those possibilities.
Merry Christmas and Happy Holidays…