Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
For you sports fans out there, we are now to the point when one thinks “selloff”, it reminds a person of Jim Mora’s incredulous “Playoffs? Playoffs??!!!?”.
Using the October lows, we see even a 38.2% retracement would take the S&P 500 down to the 1260 level. I realize that feels “impossible” right now, but I am just outlining a probability. We won’t even bother to discuss a 50% or 78.2% retracement at this point.
Using the December lows, we have more feasible figures in a ‘teflon market’; a 38.2% retrace takes the S&P 500 down to the 1292 level.
These are a long way away from where we sit now… and would require Apple to actually sell off – which it will eventually. So just some markers in the road…
(Of course as I type this the market begins selling off )
Disclosure Notice
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog