Let’s Drill Down on What Could Happen Next
Key Points on the Micro Situation..
- We have not seen a Panic Blowout to the downside, yet, and..
- A 38 percent upside Fibonacci Bounce to 2570 area on the S&P is possible before the blowout..
- That leaves a swing point to work around in the short term, 2458 on the S&P
- For the moment my guess is that the bottom for now will come in between the 2015 and 2016 S&P Highs, 2135 to 2193
- And what levels will provide clarity about the bigger picture?
- My guess at the moment is these clarity levels will be either the 1812 S&P area where a downside breakout would be triggered…or
- The 2720 S&P area where an upside breakout would be triggered.
Bigger issues are out there though..
- Is this a sell-off before a desperate Fed coupled with Government actions try to kick off another Bull Trend,
- Or is this the preamble to a meltdown of the Bernanke Bubble which started ballooning in 2012 at the S&P 1470 level.
- And keeping in mind that the roll off of the Bernanke asset bubble requires sane policies and attitudes in Washington, which we don’t have.
More Analysis Coming Down the Road as this situation evolves..