Following up on yesterday's "S&P 500 Tests 200-DMA" and "Jeff Saut Says Market in Bottoming Process" (SPY) in which I said:
UPDATE: I should have mentioned that the S&P had actually gone below the 50-day moving average today with the low so far at 1,100.66. For the purposes of the post it will be the close that matters.Thank goodness for the reflective mode.
The Index is currently at 1113.13. Come on lucky thirteen. The close on May 6 ("flash crash") was 1,128.15.
I'm thinking about getting long right here, in a highly leveraged sort of way. "Hello, Mr. Banker?"...
Here's Bespoke Investment Group:
As if a decline of 2% isn't bad enough, the S&P 500 has already broken several key levels today. The index is now down more than 10% from its closing high, below its 200-day moving average, and below the closing low from the day after the flash crash. Other key levels to watch going forward are 1,065 (intraday low from May 6th) and 1,056 (closing low from February decline). If those levels get breached, the 20% threshold for a bear market comes in at 973.80. When it rains it pours.