805 is the 50% retracement level on the SPX from 944 (jan high) to 666 low. So, that's the 1st target that we're now having trouble with. It 'should' reverse here for the 5th leg down.
However, 838 is the 61% retracement level that could also be the point of a turn. That said, anywhere around here is the point to be SELLING, NOT buying.
950 to 1000 is the target for the eventual high and the SPX lows will be tested again.
You are already hearing numerous commentators and economists trash what the Fed is doing and I heard Art Laffer yesterday make one hell of a case as to how the Dems and Obama are making the EXACT same mistake Carter did in the 70's. He explained point by point the similarities and how they led to the huge inflation/stagnation mess that gave us Ronald Reagan who turned it all around.
Gold up $65 today after being up $50 yesterday. Wow. Commodities now jamming on the falling dollar. Yikes. 4.25% mortgages? Great. But at what expense? Yeah, I think the market is absolutely going into crash mode later. But for now, be careful and nimble.
