Then it will bounce, and roll over again, but harder -- a May crash. But the worst of it comes on the third leg down, a sustained bloodletting that simply refuses to end, as the pension funds unload. A return to the 1000 level on the S&P 500 by the end of June is very possible. It looks ridiculous on any long-term chart, a sheer cliff.
But who is seriously going to buy the dip and re-establish any degree of confidence? All we need to do is get the selling underway, kissback two critical rally trendlines, and the market will implode.
When you remove the QE supports, the market returns to its point of origin. Only now we are laboring under all that debt. The weakness is there, so are the warnings.
At least this first leg down will be highly tradable. This may not be so when the real endgame arrives. So stay frosty, Be like Bibi:
|a young Benjamin Netanyahu prepares to trade SPY options|
|April's task for the S&P 500: steep decline, bounce at support|