I am not in the prediction business.
I hate the prediction business. Something unexpected always turns up that changes the entire equation that led to your prediction in the first place. I also think that picking ‘price points’ and ‘price targets’ is silly. Such targets are always revised when the aforementioned ‘unexpected’ occurs.
Which … I think proves my point that predictions are silly.
I turned bearish on this market as of 10:15 am yesterday. Momentum on the upside was broken, and we are selling off. I woke up this morning to find Asia down. Europe is down. Globex Futures has us down another 19 points in the overnight.
When will the market stop selling off?
No one knows. No one can predict.
At the same time, you have to know when momentum is on your side. As I said, I turned ‘bearish’ yesterday morning. And at least for right now? The momentum on that downside selling is steady.
When will that selling momentum ‘break’? Nobody knows. But for today?
I remain a bear.