This 850 level in the S&P is a level that the market has been bumping up to, as you saw in the piece Kevin put out this morning. For a trading account in cash I would hold off until we broke above that level with real volume. With a tight stop.
The scary thing is that there is so much money on the sidelines (institutional as well as the Fed keeping rated at 0 ) this along with the Obama stimulus + budget spending + TARP, TELP, TARP II etc (whether you agree or not with the policies) cannot be ignored. If we do get some bad earning to suppress the market it will not stay low too long- We would still love to see the massive selling to "call the bottom", but after a long recession and the indices still down 40ish% many people have given up already.
posted by Peter Greene
Transcript: Ed Yardeni
7 hours ago
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