MARKETS IN FREE FALL (CNBC)
"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…
http://www.cnbc.com/2016/01/07/saut-how-long-the-stock-selling-stampede-may-last.html
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..
