Two weeks ago I had a post called 1,280 http://www.theburningplatform.com/?p=18724. That was the 200 day moving average of the S&P 500. Technical analysts use the 200 day moving average like it is a god. Their computer programs are all programmed to sell if the market drops below the 200 day moving average. Well guess what, the market dropped below 1,280 this afternoon and surprise, surprise – Wall Stree computers hit the sell button. Look out below. The S&P 500 is now at 1,258.
By the way, gold is up $32 an ounce to an all-time high. Sure sounds like a vote of confidence in Obama, Congress and their grand compromise to cut spending some day some time some where.