That was never my point. My POINT is that this guy has "papered" the TRADING FORUM with post after post about how the FED has been trying to save the financial markets with all of the "PUMPING" that they have been doing over the past 6 months, in trying to avoid the inevitable. First off, this kid admitted long ago that he doesn't trade. Why he continues to hang-out in the Trading Forum is beyond me - - - that is unless he works for Baron and tries to keep web-activity up. Secondly, Bernanke has not been pumping money into the system for the past 6 months . . . Not even the last 3 months. Anyone with half a clue knows that when Fed Funds trades at 4.25 ( as it did before the emergency rate cut last week ) while the 2-year T-Note yields 2.3% . . . THAT IS NOT PUMPING MONEY INTO THE SYSTEM!!! Besides, those sexy little auctions at the Discount Window are REPOS which are TEMPORARY! All Bernanke has been doing is "catching" up to the rates that the market has moved to. If the FED really wanted to inject PERMANENT reserves into the system, they would be doing a COUPON PASS. Thirdly, he ( falsely ) believes that just because the correction of this Bull Market went into a Bear trend that was very sharp and short time-wise, the Bear market cannot be over . . . And I quote, "No bear market disappears in 7 hours." What he doesn't understand is that technically speaking ( and by most measures ) this market topped quite some time ago ( July 2006 ) and not at the S&P "print" high in October at 1576.09
I agree with you, people sold in panic. Panic induced by false fears of an inevitable " RECESSION "implanted by institutional traders in a classical daylight robbery on Wallstreet.
As someone that has been trading "technically" since 1981, please enlighten us as to why you claim that 1373 was a resistance level on the SPX chart? There are no fibonacci retracements at that level, nor are there any significant moving averages, or even a weekly or daily high on the charts at 1373, but I'm all ears to listen to what you might have to say . . . This should be interesting.
It doesn't make any sense to you because you obviously have never heard of a "coupon pass" . . . most likely because you weren't old enough to see it used by the likes of Paul Volcker when he was Chairman of the FED from August 1979 to August 1987. Try taking a course in Monetary Policy or Econ 101A. It might help with your knowledge base.
do you gents ever trade anything besides stocks or stock index futures ? lots of bull markets out there !!
Those were SPX 's March 2007 1370-1380 area lows and also August intraday low (which by itself doesn't have that much significance) The next resistance is the downward sloping 50 day moving average around 1420-1430 area. Now you can test me on another quizz to see if I know what you think you only know.
day you have not answered my question, are you a one way investor, or do you short stock, indices, futures?