Oh, Dear...

When I wrote my yesterday's entry, I didn't expect it that bad. Looks like we have a new range. If October action was mostly for S&P between 900 and 1000 (or for SPY between 90 and 100), now it moves to between 750 and 900 (maybe between 800 and 900, if we have upside action tomorrow). I'm probably a (very cautious) buyer at this level. Just for a trade. Probably SPY, it's hard to guess individual socks in this market.

Bad thing if we break below 750. Looks like it's the level where most traders have their stops. If they are stopped out, we can easily go to 680 in couple of days.

I used to look at any action from fundamental point of view, usually. But this is not the usual market. Fundamentals don't matter. They will, eventually. Problem is, nobody knows how low can we go...

Bernanke astonished me today. He acts like we are in Great Depression 2.0. But he absolutely denied that we are having one. Is it PR or conviction?

Full disclosure: at the time of publication author had no positions in SPY. Positions can change any time.