S&P 500 To Surf Down To 450 In Its Final Wave Down? ($SPX)

In a public research note released on January 16, 2014, United-ICAP's Chief Technical Analyst Walter Zimmermann Jr. said, "until I can locate such a flaw I must trust the technical case for treating this Fed force-fed rally in the stock market as something that will end badly." Meaning the S&P 500 will peak out at 1,923 and then surf all the way down to 452 in Wave C. Here is the chart he provided in his report "QE: the blowback to come".

Source: http://www.united-icap.com/

He promoted this call a few times in 20131, 2. I think he'll eventually be right when the sunspot cycle turns down (February or March might be the turning point). Even Fed Chairman Ben Bernanke thinks "financial instability" is a "credible" risk of the the Fed's QE program.

In conclusion, if I ran $125 billion right now, I'd be long $SPY puts if/when the S&P 500 attempted to break through its 5 year uptrend line (time frame would have to factor in a potential bounce). I've been saying this for years now, but that's still the key trend line to watch to seriously risk money on the downside, imo.

h/t Zerohedge
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