Daily S&P 500 INDEX TRACKER

[Hoop]

Yes psychologically bad for equities this time around with an aged bull to boot..
The FED are doing the right thing..they have a plan to taper ... they release or leak cryptic information in an attempt to prevent the market adjusting suddenly....but will this plan work?

No big 87 style Crash coming to the Dow/S&P .....PM sector will trade inverse of the action as they are coming out of major Bear trend

I agree JB ..Out of all the options available I don't consider a crash to be very high on the list of possible outcomes ...crashes are usually unexpected beasts and they are relatively rare events...Whats happening now could be that healthy expected correction we have been waiting for... it is expected to be bigger than the last one because that correction was very mild and was too short for the market to get much corrective benefit from.

Ananda's view is that the correction will end with the bull market still intact...my view is the bull may survive but I wouldn't be surprised if we see a cyclic reversal..A change from Bull to Bear is not dramatic as the media makes out...often its a couple of months after the reversal before investors realise that the bull had died.

...you never know... we may experience a stage 1 Bear market cycle being in Neutral......with many many months in a trading range pattern as mentioned by Sparky..there's nothing to fear about that scenario..actually traders would love it.....eh Ananda

[ananda77]

Ananda's view is that the correction will end with the bull market still intact...my view is the bull may survive but I wouldn't be surprised if we see a cyclic reversal..A change from Bull to Bear is not dramatic as the media makes out...often its a couple of months after the reversal before investors realise that the bull had died.

...you never know... we may experience a stage 1 Bear market cycle being in Neutral......with many many months in a trading range pattern as mentioned by Sparky..there's nothing to fear about that scenario..actually traders would love it.....eh Ananda

....one never knows...but bear scenarios remain unlikely within current banking strategies. Despite QE, interests been rising based on improving economic indications, logically, its time to taper.

...as for the markets, instos have stubbornly resisted to push the SPX 500 past *1700 and have been sellers into sideways *1684_*1710 for the last few weeks, forcing lower entry levels.
Am expecting a test, potentially down into *1550/*1585 (= 10% approx.) with an off chance, the market will correct into *1420 (=20% approx.). Only *1420 would be a satisfactory correction for the current, extremely overbought condition in the long frame, as the market would be heavily oversold.

*1420 would be sweetest, so keep fingers crossed. However, as said before, this bull is far from dead!!!

Kind Regards