When we drop expecting a 8-10% correction
This is a follow-up to this SPX topping blog posts: http://blackmarkt.wordpress.com/2013/03/25/follow-up-to-spx-bull-market-top-post/
We’re still melting up and every dip is an opportunity is to buy. I guess the US truly is the only place where there are zero problems while investors are fleeing the day to day volatility in Euroland and AAPL.
I decided to look at possible pullback zones in the SPX and it looks like if we top out here & retrace back to the average pullback bottom (10%) we may be looking at low 1400 SPX.
I know that feels like a long way away from the here and now. But it always feels like that when you’re looking for some sort of mean reversion and when you’re in it it always feels like the market shouldn’t just be going straight down. Such is the emotional swings in the market.
Chart below shows 8% zone pullback target 10% is around 1400 SPX