VITAL SUPPORT HOLDS DOWNSIDE AGAIN..FOR NOW!

Russell 2000, the weakest area…hit the 1080 area for the 4th time in the past year and held on a decent size reversal day.

The S&P held the 150 day moving average for the umpteenth time over the past 13 months and had a decent size reversal day.

That’s your near-term low.

What does near-term mean? It means as long as these levels hold, good. If they ever give way, then a much much much more meaningful correction will take place.

This does not change everything discussed here over recent weeks and months. The internals have headed south meaningfully.

We have been asked whether we believe the election has any play into the markets and that the powers that be will do everything to keep markets from whithering away. We never used to believe these people were involved but after what we found out on 07 and what we have seen out of this politicized Fed, the answer is yes. But that thought does not matter. Just pay attention to the bouncing ball.