The markets got clobbered today with the S&P 500 down some 2% and small caps down even more than that. Guess what? Every dip since the March 2009 lows have been a great buying opportunity. Is this the dip that doesn't get bought? Are we on the precipice of a major market reversal? Is the trend now heading the other direction?
One big down day does not make a new trend. The market continues to digest record levels and I'd much rather see the market pull back, than continue unabated to the upside.
Today's trading day was a classic profit taking day. This isn't a trend changing event.
From a technical perspective there is plenty of support at the $SPY 192 level. I think the market will move higher from there... but what do I know?
$IWM could have further to go, but the bleeding should stop at $107.
What has me even more convinced that we are heading higher is the bevy of stock market crash articles circulating the internet. Type "stock market crash" into Google and you will find no fewer than 7 recent calls for a major market crash.
and the Met's Could Win the World Series this year too.
How many times have we heard this one before?
Here is my headline:
"Ignore the scare tactics from those who have been 175% wrong about a market crash since the March 2009 lows."