Be patient and let the market come to us

The S&P 500 Index (SPX – 1,030.71) finished with a loss of 10.5 points, or 1%, to give up short-term support in the 1,040 region. For the quarter, the SPX shed 12% ,it's worst quarter since late 2008.

We have the  bearish head and shoulder formation confirmed when we closed below 1040 today. However, the market need to drop more than 3% to avoid a false break down. As a result ( 1040 x 0.97 = 1008.8 ) we get  this 1008 magic number. This number is the same number we mention yesterday which is the 38.2% fib retractment level from the low of 667 to the high of 1220. Also the 80 days moving average is sitting at 1005, what a coincident. I am sure the market will get a bounce at these series of supports.

Now we just want to wait and see the panic emotion at market bottom combine with these supports, then we can buy this market. The VIX chart still didn't show any panic sign, be patient and let the market come to us.

Again if you are a very prudent trader, you may want to wait for 952-943 support I told you yesterday.