Fighting Yoda

S&P 500 Price Growth: 1927-Aug 2008

More important point to note form an investment perspective is S&P is at a 10 year low. Even if you dollar cost averaged into S&P, last 10 years, you would have lost money. Treasury's would not only have preserved your capital and also would have given at least 3% return (I don't know the exact number is) vs. 1.62% for the S&P.

So equity investment has been a complete scam - Wall Street gets the big bonuses and salaries paid for by us investors. All confidence is lost – systemic risk has been realized – it is worldwide meltdown. The system must be broken up completely.

Meanwhile we are going way down as was clearly evidenced by the post bailout reaction. Bailouts are becoming bigger and bigger but the rallies are becoming smaller and shorter. Finally we had the biggest bailout, the grand daddy of them all, and the market actually went down.

From a technical perspective all support levels have been pierced - 200 d ma, 220 w ma, next support seems to be at 800 the 2002 low.

So just brace yourself, get out stay out.