The market will continue to go down, it has no choice. Probably down to 152 to 153 on the $SPY. It should hold at the 10% correction, this should set us up for the next rally. We had the same action to occur in May and November of last year. The patterns should repeat as long as the fed continues to play its games in the market. Don't miss it. (Click on image to enlarge)
Thursday I watched the market closely. I noticed 5 attempts to break the 50 day moving average. All 5 failed. Then on Friday morning about an hour before the market was set to open the S&P Futures were up over a point, but by the time the market opened, not only were all gains wiped out, the $SPY was down over a point on no news. My only assumption is the market was expecting Ben Bernanke to issue a Friday statement that never came to pass. Back in 08, the Fed was really good about making those Friday announcements that would send the market spiking. Oddly enough most of those announcements always came on the 3rd Friday of the month (options expiration).
As for now, Bernanke is boxed in. If he continues to buy treasuries to get the rates down below 2%, it will continue the inflation at the Supermarkets which is harming the poor and middle class which will eventually lead into harming the economy. If Bernanke doesn't continue to buy treasuries, since the money that was printed was not used for the purposes they told us it would be used, we cannot sustain a 2.6% interest rate with a ~1.3% GDP and the market is headed for a good 10% to 20% correction.
We can't change what the clowns in Washington are doing, but we can still create wealth. If the dollar starts to go down and the market continues to go with it...(both must happen Dollar Down AND Market Down, that's the key!)...gold and gold mining stocks will soar! If Bernanke decides to bring the rate down below 2%, the stock market will go up and inflation will be horrible.