06/08/10 Baltimore, Maryland – Stocks continue to fall this week. The Dow and S&P fell over 1% again yesterday, continuing Friday’s big sell-off. Just as we hinted regarding gold…there’s no “new news,” just continued debt and leverage crises around the world. The S&P opened down this morning about 0.2%
Thus, the S&P is now over 13% off its April highs – well into correction territory and marching toward another bear market.
We’ll be watching the S&P extra close around 1,035 (it’s at 1,050 now). That level would mark a 15% fall from its highs. Recent S&P research declared that since 1946, 80% of the time the index has fallen 15%, its gone on to a technical bear market – a drop of 20% or more.
In short, if the S&P falls over 15%, there’s a high probability it will fall much further.
Addison Wiggin
for The Daily Reckoning
Addison Wiggin
Addison Wiggin is the executive publisher of Agora Financial, LLC, a fiercely independent economic forecasting and financial research firm. He’s the creator and editorial director of Agora Financial’s daily 5 Min. Forecast and editorial director of The Daily Reckoning. Wiggin is the founder of Agora Entertainment, executive producer and co-writer of I.O.U.S.A., which was nominated for the Grand Jury Prize at the 2008 Sundance Film Festival, the 2009 Critics Choice Award for Best Documentary Feature, and was also shortlisted for a 2009 Academy Award. He is the author of the companion book of the film I.O.U.S.A.and his second edition of The Demise of the Dollar… and Why it’s Even Better for Your Investments was just fully revised and updated. Wiggin is a three-time New York Times best-selling author whose work has been recognized by The New York Times Magazine, The Economist, Worth, The New York Times, The Washington Post as well as major network news programs. He also co-authored international bestsellers Financial Reckoning Day and Empire of Debt with Bill Bonner.
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