Re: market is RED down $550 now
Two other things: My broker friend called yesterday and pointed out that in Dec 2018, the market dropped just short of 20%. He said he doesn't think we will go below a 20% decline because of all the money out there. What does he know? But back in Dec 2018, the market did seem to turn on a dime right at that level.
Second thing. While many have argued that the Fed has created these bubbles with their easy money and QE, are they really going to let this decline get out of hand and potentially cause a recession or worse? Almost every single time we have had a selloff that looks like it is starting to get out of hand, the Fed and the other Central bankers step in. Some are arguing that their free money is no defense against something like the coronavirus. That may end up being true, but I wouldn't expect the central banks to give up without trying. It's like former ECB head Mario Draghi said: "we'll do whatever it takes."
I hate to be relying on the Fed to rescue the market because you just don't know at what level they would come it. But history shows that they do come in. I wouldn't bet my life savings on it, but I may begin to nibble very gradually.