Look Out Below

As partially predicted yesterday, we had a bounce on the S&P from the 200 dma and closed up, though it looked a bit, ahem, "rigged."

Today was not good.

The S&P head and shoulders is active. Target is around 835. If we don't see some buying around that level in the next couple of weeks to force a rebound, then look out below. There's a reasonable chance that we'll take out the March lows. If that happens, I'll make two predictions:

1. We will enter the Greatest Depression that makes the 1930s look tame.
2. Barack Obama will be a one term President.

We're going over some charts for posting later this evening. Look for a moderate bounce tomorrow. If you're not already out, it's time to lighten up and be ready to head for the exits.