Wow. It’s not too often stocks lose a collective 3% within the first 5 minutes of trading. I suspected we were due for a nasty pullback (the kind of dip I forecasted on Thursday), and sure enough, here it is. The S&P 500 has now given up 4.8% from Thursday’s high. Is this enough to jolt the euphoria out of the bears and bring them back down to earth? I think so. More importantly though, I think the result today is a huge buying opportunity for the bullish…. which I am.

One of my key indications was going to be support at the 50 day moving average line, currently at 791. Today’s low of 787 technically broke support, though the two levels are close enough to say - so far anyway - that support is still in force. A little more to the downside though, and I’ll have to rethink things.

Nevertheless, you have to swing the bat sometime, and sometimes you have to swing at a fastball that nobody else would swing at. Today’s one of those days. If I miss, so be it - I’ll pull the plug very quickly (another point I made on Thursday). I’d just rather try and fail than fail by not trying, as I think today’s negative reaction to the news is going to be short-lived.

That said, I strongly recommend you keep an eye on an intra-day chart today (I prefer a five-minute chart), because the market could change course just that quickly. The opening gap is taunting the buyers, and if they bulls call the bears’ bluff - if it’s a bluff - the rebound could happen quickly.

We’ve attached a daily chart as well as a five-minute chart.

Are other forecasters missing too many opportunities by chasing old trends rather than finding the new ones? Yep, you’re not alone. Start getting notices before it’s time to buy or sell - not after the fact. Sign up for our e-newsletter today.