It's Even Worse Than it Looks

This is the MONTHLY chart for the S&P and yes, it could go all the way to the 800 area which is where it was in 2002. The formation is known as a "double top" and the right part of the chart actually has no bottom. The good side of this is the rapidity of the fall generally means a washout from which a real rebound will occur. How high? Will probably find true value of market. Keep in mind that speculation has fueled the market for years and the specs have to be washed out til they are wiped out. Having said all this, get out of the market. But it's probably too late. It's stuff like this that makes me have sell stops on everything I do so my losses ain't losses because all my charts told me to get out nearly a month ago. Am I waiting for a buy signal? Fuck! I'm scared too.....

Marty Zweig, one of the best market guys has always used a "fade the media" buy or sell signal. Many of us know that the saying, "Whenever you see a pound of sugar on the cover of Time Magazine it's time to get out of sugar," meaning the assholes in media know jack shit. Ridholtz over at Big Picture thinks the Cramer "sell everything" alarm is a gigantic buy signal.