Thursday, January 7, 2016

Markets in Free Fall

"The markets look like they're in a free fall right here," he [Jeffery Saut] said. "It feels like we're in one of those selling stampedes, and they typically last 17 to 25 sessions. And this would be only session six. I would be more cautious here." – Jeffery Saut, Strategist with Raymond James. Story at…
My short term bull thesis is gone too.  The most likely scenario is a retest of 1898 on the S&P 500 that we last saw on 25 August. I am not sure about 20 sessions of “selling stampede”; somewhere around half that value (say 10-sessions) looks like the max for a waterfall event where the market goes straight down – assuming this is a typical correction.  Unfortunately, we do have a lot of evidence that this could be the start of “the big one” as I have covered in previous blogs..