The SP500 started the year at 2,058.90, for the first eight months the market traded sideways, rocking everyone to sleep until late August when it decided to pull the rug on us. If you remember those first eight months, the market went up, went down, making everything look rosy, but in actuality individual stocks were deteriorating underneath. However, every time the market started to find its footing it was pulled back right to its year to date breakeven level, that level was protected until it finally gave way on 8/20/2015. Very simply, that level has been a magnet. In the last two weeks, we have tested that level three times, each time on an intraday level the market has bounced off it, letting us know that this is a very significant level, one that can cause short term pain if we break below it decisively.
In my opinion, there is a high probability we will end the year flat, and the summer mini crash will seem like a blur. It might best to pay extra attention to individual stocks until year end.
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