Yesterday we predicted that “One of these days we will get a 200- 300 point down day in the Dow followed in a few days by another. Headlines everywhere will talk about the Crash of 2009.” Thursday was not it.
Thursday started out as though it wanted to make that prediction come true, but by the end of the day, some strength came back in. That said, the market is overbought enough for more than a 1-day correction. We think another leg down to the 1072-1078 area in the S&P 500 is likely, but if it happens, we expect that zone (a gap zone) to hold, for now. We will show a chart of this support area over the weekend. Full Article
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