Wow! What a day yesterday and this will be one for the ages. We had a complete panic yesterday and in hindsight there were many clues telling us this was possible. Now the media is fumbling a long trying to explain why this happened. Can you believe they are blaming it on a fat finger. Someone just happened to pressed the billion share button instead of the million share button. I do not know who they are trying fool but unfortunately 95% of investors will believe this and continue not to recognize the significance of yesterdays market crash. It was not the fat finger but "TIME" that triggered this fall. It was the biggest one day drop ever and I still feel that there continues to be too much complacency even after such an event. Now we may get a snap back rally to 1160 on the S&P500 but I feel the market did give us a hint of what is to come. Over the weekend we should here central banks around the world talk about intervention and possible measure to stem further volatility. This may support the market over the next week but just like the 2008 meltdown the market is just too big for any central bank to stop price from going to where it wants going to go. The key level on the downside over the next few weeks is the 1070 level on the S&P500. If we break this level with momentum and close below the February low this could be the start of a wave down that will be larger than the 2008 wave down. The name of the game over the next few months will be volatility.
Below is my Master Weekly Chart for the S&P Emini.