What crash? - stock market crash 2016

The last time the Greedometer and mini Greedometer were showing similar readings to what they were 1 week ago (before last week’s stock market drop) was the week ending August 14 2015.  On Aug 18 2015 at 9:30am I posted this warning:  here

The SPX was in free fall for 2 weeks and had to be stopped by NY Fed Prez Dudley. Granted we flirted with a 15% drop.  20% drop level would likely have been seen that week had Dudley not intruded.  It cracks me up how many investment pros say monetary policy does not matter.

What’s happened since?  Dudley stopped that opening dip. The Fed followed through with moving the goal posts (rate hike moved from Sept to Dec).  The ECB threatened and delivered a slightly disappointing sugar bomb. The PBoC shut its markets down and doubtless went through many billions of yuan supporting its stock market (Go! National Team!).   And 5 months of reprieve was obtained.  Until last week.

Do not interpret the dip we’re in as being a 1-off event. It is the first drop in a series of larger drops.