Today if the S&P500 doesn't find support at the 1070 level, it will continue down to the 1025 area for a huge sell-off on the day. Over the next few days, the S&P500 could head for the 1000 level before finding an solid support or the 950 level as indicated in a previous post.
This 950 level will probably allow for a DCB (dead cat bounce) back to the 1100-1125 level over the next few months and then it will dump in April-May 2009 for the 2nd shoe to drop as the amount of toxic paper really becomes apparent.
Everything mortgages reset, there will be another wave of mini-crises where the US Government will have to intervene and increase its strangle control over the US financial markets.
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