More evidence...

... that an important low was established at 1056 last week.

On Saturday, May 8, the New York Times again had a stock market headline. That made it two consecutive days, the first time this has happened since the March 6, 2009 low when two consecutive stock market headlines occurred just a day before that low. Then on Sunday the Times' headline was about the Greek contagion spreading to the U.S. and the rest of the world. The story inside the paper quoted several people, notably Bill Gross of Pimco, who remarked how the fear that had overcome investors had changed the bullish situation into a bearish one.

Finally, Friday night's Tonight Show with Jay Leno had Jay doing a long riff of jokes on Black Thursday's stock market crash.

This is yet more evidence that Black Thursday was a big buying opportunity for the contrarian investor. I think the cash S&P is now headed for 1300.