Wednesday, February 16, 2011

SPX 1450 measured target... (

Top caller capitulating?  Not quite.  I put a search feature on the blog over there to the right and I am sure some digging would turn up a post or two showing SPX with a target of 1450 off of the structure that got created during last spring and summer's bear festivities.  The measured target is and has been 1450 or thereabouts.

Now, being the blogger with a bright, sunny and optimistic personality, I held open a chance for a healthy correction to refuel the market for this upside objective.  Nuh uh Gary, you sure are a naive one.  This pig has 1450 loaded and if it means to take it all in one huge gulp, I am going to get pretty macro bearish on the good ole US of A, given the inflationary expenses that our dear leaders are putting forth to promote this recovery. It's the old inflationary depression scenario, which is what societies in denial go through when they resist the deflationary kind.

So here is SPX with its target.  If it does not correct meaningfully on the way to 1450, a darker picture is going to assume leadership vs. the brighter one I have been holding open.  You can't inflate your way to prosperity, can you?

This would be an amazing hand off of stocks by those that bought in 2008 and 2009 to the frightened masses huddled in the perceived safety of treasury bonds these last two years.  What drama.
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