SPX confirms definite break out (can someone forward this to Bernanke and explain what it means to him?). The pattern confirms a target of 920-50 for the SPX. There is still a chance for a temp brief rally but we need to go down there after all.The mini upside attempt did not even test the breakout points.
Had to smile earlier when a "specialist" came and said on CNBC we expect $78 earnings that gives us a PE of 13 which is cheap. No idea who pays this kind of guys to tell such bull......- but cheap these days would end at 10 times but even that is not really cheap.
So a SPX level of 950 is still 12 times earnings and not cheap and we rather can assume that we might even not see those earnings. That is why markets get down on a fundamental basis. Anyway, we have, for various reasons, the chance for a temporary upleg since we are deep below weekly and even monthly Bollinger Bands. Which does not change the matter of fact that we are in crash mode and could even switch to a real panic since institutions have not even started selling.
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