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Crash Scenario in Place

By on August 3, 2011

The stock market is currently collapsing after the S&P 500 closed below its 200 day moving average yesterday.  The Dow is on track for its 9th straight down day; the first time since 1978.

Previously, the S&P 500 approached the breakeven mark for the year in March and June.  Both times marked a bottom and the market recovered significantly.  This 3rd time may be the charm for the bears to overwhelm the bulls.

There will be a rally at some point.  The problem is that it may be from much lower levels.

2 Comments

  1. Berry McCaulkiner

    August 3, 2011 at 7:19 pm

    I’m betting on a rally sooner rather than later. The usual suspects have emerged with their doom and gloom prognostications.

    Reply

  2. Barron Maestro

    August 3, 2011 at 9:45 pm

    Yeah, Cramer cracks me up. On Thursday he gave the viewers of Mad Money the all-clear for buying 1/2 positions on Friday, with more later if the market fell further.

    Today when the Dow was down 150 he said he could see no reason to buy stocks now!

    Reply

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