Tuesday, March 3, 2009

Still waiting...

I would say we are within 1.5 points of hitting the "temporary" bottom on SPY. This forecast differs greatly from all those portending doom in the next couple of days. It is true that there is complacency as $CPC finished at 0.95, so right now there does not appear to be alot of fear or bullishness. I suspect a rally now will be very sharp and pull all the retail investors in for a sharp spike up, followed by some choppiness to test their resolve and then a final spike up to the 75ish area or higher (but not above 80). Then a massive collapse back down the 600 area.