You cannot call yourself a bull if SPX declines to 1925 and you are not buying there. Me? I am not a bull, but I am someone who, if the view remains as is, would be buying some stocks back around there if this drop gets that low.
SPX has dropped below key support levels (as noted in NFTRH 401) and has ticked the 38% Fib retrace on Brexit hysteria and the 50% and 62% are doable as well, if the margin man gets on the phone. Lateral support enters the picture at the 62% level while there is little if any above it.
We are already nearly as over sold as January and more so than at the February re-test (by RSI). So this thing could bounce sooner. But a puke event to 1925 could see a bottoming process prior to a big bounce at least.
The thing is, to be a bear I’d much rather see a grinding top that just wears everyone down over time. That was why I was resolute on the SPY short for so long. As a bear I do not like flash events on global hysterics. I can’t out think them, so all I know is cash. That way, targeting things like the above becomes fun, as opposed to a blood sport.
Subscribe to NFTRH Premium for your 25-35 page weekly report, interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Also, you can follow via Twitter @BiiwiiNFTRH.
