Another brutal selloff yesterday but we’re getting close to my target zone.  My daily timing model issued a few BUY signals last Friday and the volatility indicator breached 7.  Crazy. I’m curious to see what my weekly timing model says today when I reach the office and update it.

All this crazy volatility is due to forced selloff’s by funds and investors but its got to end sometime.  My simulations show that 800 is an important level on the S&P500 followed by a test of the 700 level.  I believe that the bottom is somewhere between that range.  If that analysis is correct, then we are looking at a 50% sell off!  That’s where I’m firing my last $$$ salvo into our 401K’s and sitting tight.