SP500 February Meltdown Review: How’s Investing For The Long Term working For You Today?

The markets got serious this afternoon as another near vertical decent move played out. The January meltup has not turned into a February meltdown. This is a classic move with a counter rally in progress. This could be just a small rally but should produce some sideways action for a little while.   I still can’t see wave 1 in Minor degree, but I’m sure it will show up by next week or even sooner.

The VIX blasted up to just under $40 with a massive spike which must correct in time. No spikes opened on the way up so that is actually a good thing.  I may still have a small degree 4th wave rally that needs to play out, but when we do switch into a higher degree, the counter rallies will be bigger and take longer. In the first few days the markets lost about a trillion dollars and I bet this has just tripled in the last 3-4 hours of todays trading sessions.

You’re not going to find this “lost” money  in the lost and found department, because this money has disappeared in a puff of electronic smoke.

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