I cannot comment on where I think the S&P will go to. However making the support level calls of 400 and 600 doesn’t take to much rocket science. When the S&P pushed through 2002 support levels that was very significant from a technical point of view. Through the past 3 weeks we had touched it but bounced off it. On Thursday however we busted through it and Friday it was not until the miracle last 90 minutes that we recovered. Note however this “recovery” only brought us UP to that level. The 600 support level was a minor retracement from July of 1996. Not sure if I would even call it a support level but I don’t know much about technical analysis. The stronger support in the low 400’s, actually 375 is found back in 1991.

Just to put things in perspective in a matter of months we have seen the S&P fall to levels not seen since 1997.

However after more then 3 years we have seen a much more modest depreciation in housing. Those who think we will see a quick move down in housing, or that the bottom will be within a year or so are sadly mistaken.

Now do I think the S&P will find 600? Do not know at all. I think there sure the heck is alot of money on the sidelines right now though.