Technically, This is Where I Think the S&P Will Find Strong Support and a Final Resting Place

The Great Recession

This graph shows where my mind goes every time I ask myself how far the S&P 500 is likely to fall before it finds a solid bottom.

As you know, I don’t make predictions based on charts, but clearly there is intense convergence of longterm support around the 2,000 level and strong indication of a subliminal desire in the market to keep plumbing the bottom to find that depth.

Dave-Portnoy daydream traders notwithstanding, this is where the market’s undertow wants to pull it. I’m not saying it will get there, but that is the level at which the stock market would finally find substantial technical support and possibly economic convergence. The economy, at present, would strongly support stocks at that level … unless the economy falls further; then even that level could look overvalued.

See the graph and read the rest here:

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