ETF Prophet

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Mr. Ice

1987 crash analogies were all over CNBC today.  Technology weakness were exacerbated by poor GE and MCD earnings.  Selling spilled over to the rest of the market.  VIX popped over 17% at one point before a small bounce end of day.  We are back to last week’s low.  Mr. Momentum had certainly changed jerseys a few times.  As we approach the election and the Wednesday FOMC, we can probably expect another 1-2% retrace vs an outright crash.

2 Responses to “Crash Test”

  1. When u say 1~2 percent retrace…u mean a bounce? or further downside?

  2. Further downside. It would be about the 1420 to 1410 S&P area a bit below the 50 ma but above the 200 ma.