Cliff-diving, Japanese style
Posted by Charles II on June 13, 2013
Down 5.7% (758 points) so far today, and 20% from its high. US futures scheduled to open down 0.75%, and roughly 4% (S&P) from its high.
Seems pretty clear that money is flooding out of international markets (Japan, Brazil, Turkey which is down roughly 20% from its high) and into the US. Which is not keeping the US from falling, just from tanking. The permabears are calling for a new crash as bad as 2008. I don’t see that, because the bubble inflation seems much smaller. But certainly a 10-20% correction would be normal after the enormous run we’ve seen.
SPY trading at 50 day moving average. It’s likely to bounce, at least in the short-term. If it breaks below, the first strong support is at the 200 day MA which would be somewhere around 1500-1550.
(But don’t watch the technicals. Watch the news. Things like the Turkish riots are real news, and real news is what really affects the market)
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