The chart shows a 2778 rally target that would represent a nearly exact 50% retracement of losses sustained at the low of last week’s crash. At that price the S&Ps would be trading a mere 18% from the record-high 3398 achieved on February 20. Does anyone actually believe that a stock market that was pumped full of gas to begin with will have properly discounted the global recession-or-worse that is coming at that level? Surely not, and that’s why this bounce, spectacular though it’s been, is doomed to fail. Looking just ahead, getting short at the 50% mark seems too obvious a strategy to succeed, so we’ll be looking for alternative ways to lay ’em out at the appropriate time. Denizens in the Rick’s Picks trading room have been diligently monitoring this vehicle anyway, and trading the heck out of its thrusts, dives and swoons. For now, use p2=2684 as a minimum upside objective and stay close to the Trading Room for intraday adjustments.
