I am getting flashbacks to that time period. But this time, we have less optimism. The Fed is more willing to pump money into the system now. The only difference is that we have proof that the recovery has slowed down. In March/April, there was no proof of a slow down.
I don't think we'll make new recovery highs in the ES. 1200 is a possibility by early November, but that would set up another good short opportunity which could be ridden down to 1100. Those talking 1300, 1400, are not aware of the new normal. In order to reach those levels, we need to reach escape velocity for GDP growth and I don't see that as likely unless Banana Ben goes crazy and prints an extra $3 trillion+.
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