As an extension of my post this morning, here is where the SP500 Index (SPX) could end up in a crash in the 25-30% range. Using the 1987 crash low and the 2000 bubble high, we can see the mid-point is about 27% down and above the 2002 bear market low.
Tags: Gann Angle Fan · Standard and Poor's 500 (S&P500)2 Comments
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Thanks Andy, the charts are most appreciated, the markets attitude changed today, I see lots of calls being purchased, very interesting, maybe wave C up is still going to pan out, thanks sooooo much have a great wkend.
Libby - I think the WaMu sale changed everything. The gov’t didn’t know what to do with BS, IndyMac, and LEH. It appears they have a system in place now to use private funds to do a significant part of the “bailout”. If this process is used with all the other banks which will fail in the coming months, then it won’t cost taxpayers much. The current plan in congress will be a good backstop for this new process as not everything will go as smoothly as WaMu.