So far, today’s intraday high in the SP500 is 990. Please forward that print to all the crash callers out there – the 990 level in the SP500 is -2.2% off the 2009 YTD high, +9.6% higher than the 2008 year end close, and +46.4% higher than the capitulation closing low of March 9th.
The last 2-days of selling are what we simpleton macro folks call a correction, not a crash…
Calling crashes is, presumably, a behavioral response by the manic media and group-thinkers alike who missed calling the 2007-2008 US market crash. It is sad and it is silly, but don’t get upset about it – capitalize on it. Provided that the US Dollar remains broken across all durations, stay with the global macro program that’s worked since March. Buy red on US Dollar up days; sell green on US Dollar down days; rinse and repeat.
I have been, on balance, selling strength today. As is customarily my problem, I am sure I am making some sales too early. That’s my problem, not yours. Immediate term TRADE lines of resistance are at 999 and 1020 (dotted red lines). A close below 999 today puts immediate term downside TRADE support in play at 979. A close above 999, combined with a Burning Buck and the kind of global macro data we received out of Hong Kong and Germany today, and you’ll see another higher-YTD-high to sell into.
Keith R. McCullough
Chief Executive Officer