Thoughts {01.07.16]

Before I put out anything more comprehensive I want to see what happens today with stocks and how they react to the open.  Here's a few thoughts before stocks start to trade.

*According to CNBC the average stock is down 20% from its high already.  That's bear market territory folks.

*However, market got creamed last January as well and roared back until topping out last May.  Will have to see if history repeats itself.

*Based on where it's likely to open, the S&P 500 is trading back now at levels we first saw around Memorial Day 2014.

*A lot of trapped longs now in almost everything at higher prices that creates significant resistance overhead.  Buyers of these long securities will likely be sellers as they get closer to break-even.  That's a significant overhang right now.

*Financial community is as bearish as I've seen it in years.  Public hasn't quite woken up to the whole thing yet.  Going to be harder for the Federal Reserve to continue raising interest rates this year if this keeps up.

Back either later today or tomorrow.