Where is the support in S&P 500....????

Much has been written about markets in the last 48 hours......Some are predicting the following:

Carter Worth sees 980 in S&P 500...this is the same number he had as HIGHS for S&P 500 in his model...he missed the HIGHS (1101.36) by 121 points or 10.99%.....so we have to take this target knowing his model missed the highs by huge %......

Indices are sitting @ following correction % :

Dow <4.02%> RSI 45.34...healthiest & within trading range of last four months

S&P 500 <5.92%> RSI 41.51...slightly lower than low of last four months

NASDAQ <6.64%> RSI 38.30.....washed out area..lowest point by far in last four months

In the last June-July correction we went to <9%>..will it be the same this time around???

So...let us look @ support of S&P 500 which rest around 1020 area which is another drop of 16 points or 1.5%......which will make the current pullback to <7.42%>

IF...we believe then it looks like this...that we open LOWER on Monday hit 1020 area & then buying comes in.......

IF we fail to see buying then 990 to 1000 area is strong support..which means correction will continue for another 46 points from Friday's close which could be 1.5 days of pullback or another 4.4% for a total pullback of 10.32%.......

Most likely something between 1020 & 990 CAN happen........like 1005.......

So what we do in the meantime......look for individual stocks who have been acting well "technically speaking"...means stocks which have good chance of maintaining or claiming 50 DMA......

It IS going to be a stock pickers market from hereon......for maximum gains.....it is OK to be early as we have corrected almost 7% already.......markets do turn on a dime very quickly...so do NOT be afraid of the TAPE for a day or two......some stocks MAY have seen their LOWS already......

Some stocks like TSL & AAPL are above their 50 DMA and have HUGE upside targets....& their RSI are in 47 area.....

So my message IS..... that worry more about stocks you want to buy than worry about markets correcting for few more days.....it IS the stocks which will make you money not where indices are...

Markets have pulled back like June-July on economic worries...Roubini,David Rosenberg,Robert Prechter & other technicians were screaming disaster back then also and NONE came to fruition...David Rosenberg IS on record that by end of October we will be @ 840 in S&P 500 which he missed it by 196 points or 18.92%..... NOW he is implying S&P 500 in 700 area..he has lost credibility even with rating starved CNBC....

SO..you have a choice to react to every wild prediction on the downside or start picking up the bargains as they do come every three months only......

Here is my $ allocations as of Friday :

TSL 34.32%...Solar fully integrated
GNK 26.16%..Dry Bulk Shipping
AUY 16.88%..Mid Size Gold Producer
MRVL 14.50%..Technology for PC/Smartphone
COMS 8.14%..Technology/Networking

Again.... buy stocks in a diversified manner and as always make sure you are comfortable with being in the market..nothing is worth being worried 24/7......

BLOG does NOT give buy or sell.

Saleem