Extremes Continue

OUCH! One of the worst trading days in the history of the stock market as the S&P was down nearly 9%! Obviously the market continues to trade in extremes. We expected to get a pullback given that the market had risen so strongly over the preceeding week, but this was a bit overdone. The market will likely bounce back today, but probably won't make up for the entire loss from yesterday. This is a critical week that may be very telling on where the market will finish year end. The market could move up and by year end hold in the 875 to 950 trading range or it could finish the year lower from where it is today.