Basically we have a lot of volatility. As you know over the last 12 months the S&P 500 Index rose from 1010 on July 1st, 2010 to a peak on May 2nd of 1370. Then we dropped to 1101 and now we are at 1178. So we have a lot of volatility.
I think the market may rebound somewhat more here because we are very oversold and some technical indicators have turned positive including insider buying. But in general I think it will be extremely difficult for stocks to make a new high and after this rebound I think we will drift lower.
Not to say that we will collapse because if the S&P 500 Index drops to 1000 or so, the Fed would certainly pump again money into the system. - in Fox Business News, aug 12
Related: SPDR S&P 500 Index (SPY), ProShares UltraShort S&P500 (ETF) (NYSE:SDS), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ), ProShares UltraShort QQQ (ETF) (NYSE:QID)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
