A Stroll Down Memory Lane – March 2007

When March 2007 arrived the market was in the midst of a 5.86% correction from the Feb highs that was trying to bottom at 1375 $SPX on 3/5 right where we closed today.  That same level marked the bottom after a 9% correction off the 1550 level when the BSC hedge funds blew up, basically the first domino to fall in the credit bubble collapse.

At that time

Unemployment Rate:  4.50%

ISM:  51.9

5YR UST:  4.50%

Gasoline:  $2.50

Today

Unemployment Rate:  8.3%

ISM:  52.4

5YR UST:  0.90%

Gasoline:  $3.75

so making 1370/1375 support is important and should be respected because it potentially represents a market finally putting the financial crisis behind it..   however it still doesn’t look to us like this move is impulsing higher, certainly not today’s move from 1365..  dip buyers beware below 1365, feels like a trick is coming

but as we said before

the dreaded B wave elicits horror in all who stand in its way

 

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About exantefactor

capital market veteran of over 15 years covering multiple asset classes. Focused on analyzying markets ex ante (before the event).
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