How low for the S&P500? We don’t know but doubt the lows for year are in. The next big Fib is the 38.2% retracement of March ’09 lows at 1101.73. That is the big number to watch. Next would be the 50% retracement at 1018.69.
Gold? If the Bernanke even hints at another round of quanto at Jackson Hole, “to the moon, Alice.” We sold into the panic buying on Friday and hoping to reload at lower prices.
Take a look how oversold the DAX is! The index is down a stunning 25 percent since the middle of July. Thinly capitalized banks during a panic will do that to you almost every time. Good luck this week.