The S&P 500 has seen a 30% decline in just over 2.5 months of trading sessions (as a heads up the written figures in the chart are approximations and for these purposes don’t require great accuracy). ISYN proposes three probable outcomes for the remainder of November.
1: S&P declines further on a bankruptcy or something unexpected – max downside approximately 10%.
2: S&P sees moderate rally from the ~900 level and closes around 950.
3: S&P receives whatever minor excuse it needs to rally through the end of November and it finishes up (1,000 – 1,050 range).
Given these outcomes ISYN expects a 66% chance of a rally into month end. I’ve been quite bullish over the past few weeks and as such I’ve also been quite wrong. One of the largest difficulties with the stock market is that being early can be just as disasterous as being completely wrong. However I stand with the bulls on this one as I have not seen anything to warrant the changing of my view. ISYN thinks the market is tired of being sold, tired of the negativity, and now is like a drunk guy with a loaded shotgun – it’s just waiting for an excuse….. to rally.
S&P 500
OR like an old lady aiming for your “toodles”
**UPDATE**
EXTREMELY BULLISH AT S&P 850
[...] refer back to THIS POST to examine ISYN’s expected November [...]