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We spoke at the Yale School of Management this afternoon and, I must say as rewardingly inspirational as that dialogue with young capitalists was, it’s such a downer to come back to my post and have to watch conflicted men compromise themselves in front of the American people. The New Reality is here, however… and unwinding the excesses associated with being compensated for being willfully blind is a process that’s finally in motion.

Bottoms are processes, not points. I maintain my view that the November low in the SP500 will ultimately hold, and that we will continue to make higher lows on selloffs. That said, Geithner and what you are seeing via the You Tubing of Wall Street on TV today have crushed confidence in both the American economic system and the leadership embedded therein.

Below I have painted a line of immediate term support for the SP500 of 807 (dotted green), and I think we are going to need to test that before this is all said and done. For now the best advice I can give you is to make sales on green.

Keith R. McCullough
CEO & Chief Investment Officer