The quote from Mr. Buffett - "Investors pay a very dear price for a cheery consensus" comes to mind right now in respect to the forthcoming downside expectation we have for the S&P 500. Most investors and analysts appear to be viewing the move off the recent lows in the S&P 500 as an impulsive wave structure that is heading to new highs. We do not, and of course the cheery consensus won't occur until after a substantive breakdown begins to culminate such that the bulls are trapped, and the bears who missed taking a position are left wondering why they failed to do so.
In my recent article published here on Seeking Alpha, I said that we had positioned our subscribers* and investors* into shares of the ProShares UltraShort S&P 500 (SDS) near the high seen on May 16th. When this drop hit and held the 1.0 extension of the move off the all-time high seen on May 1st, we exited for a handsome profit.