It's the End of the World As We Know It, One Month Later

° As I said a month ago, not a forecast, just observation.
° The S & P 500 closed Friday (3 ottobre) exactly on the optimistic longterm trendline. (Today, 8% collapse in Milano, not so jolly 4% in New York.) What does breaking this trendline tell us? What we knew already, that the financial climate that has prevailed since the mid-nineties no longer obtains.
° What would it mean if the S & P retreats another 20% or so to the conservative longterm trendline in the 850ish area? (Well, it would mean some very very unhappy investors, that's for sure.) If the S & P reaches 850, and holds, it means that the secular bull market, that America's economy, can revive and grow from a lower level. If the S & P reaches 850, and falls through, it means . . . .
° I've about given up on that condo in Ecuador. Now I'm more thinking a trip to the Mexican Market and a Boone Pickenslike investment in dried beans.
° Though my friend at the Y is clearly wiser, he plans to fill his closets with nutritious and heartwarming scotch.--Giac

Chart drawn with software from Ultra Financial Services