Quote from huh:
Actually if you step back away from the deceiving 106 point drop on the S and P you can see that this really is not a big drop. Take a look at the S and P low on Sep 18 which was around 1133 and that day we got some BS reversal and the market bounced higher on the basis of CNBC news announcing a possible bailout plan. So the run up off 1133 on the 18th was due to the bailout being priced into the market.
Now the bailout is gone for now so we are about 20 or 30 pts below where we started. I think the real level for S and P should be around 1120 - 1130 until the plan actually passes. Obviously the longer this bailout takes to pass the more likely we will head lower. The main fear at this point is that if joe6pack decides to start selling the old 401K all at once that could cause a big problem......but when this happens then I"d be willing to call a bottom once the avg person starts dumping their 401k....
