U.S. Stocks Plunge, Sending S&P to Lowest Level Since 1997

“The S&P 500 extended its 2008 tumble to 49 percent, poised for the worst annual decline in its 80-year history … all 10 of the index’s main industry groups slid at least 3.5 percent … The S&P 500 slid 6.7 percent to 752.44, under the low of 776.76 reached during the bear market in 2002. The Dow Jones Industrial Average sank 444.99 points, or 5.6 percent, to 7,552.29. The Nasdaq Composite decreased 5.1 percent to 1,316.12.”

Revisiting the long-term chart of the Dow Industrials with key Fibonacci retracement levels (last posted in early October), we can see that 7500 is a pretty key level, but if it gives way then 5900 is next.

On a happy note, readers of my newsletter know that last week the model said to buy the Ultrashort Financials (SKF) on Monday around $169. It’s currently $262 … not a bad return over a few days.