666

The S&P 500 fell 6.66% Monday, down nearly 80 points for one of its worst losses in history.

The media will tell you it’s all because of the U.S. credit downgrade by Standard & Poor’s. That may be the case.

What we can say for sure is that Standard & Poor’s shouldn’t be given much credit for its work after missing the call on the entire subprime market before it collapsed. The sole purpose of this agency is serve as a risk guide for buyers. And one could argue they’re responsible for the debt this country now owes after it had to bail out the banks it once deemed financially stable.

But none of this really matters now. We don’t live in theoretical land. What we have here is a frightened market that will likely shake out sellers in a hurry, possibly setting up for a Bull leg we can trade on.

Until we have evidence of that we’re sticking with our Sell Bias right now.