Emergency meeting and the S&P 500

We just came from from a horrible week in the stock market, there were some rumors that the markets were going to quickly recover...and just an hour ago the Federal Reserve an emergency meeting with mayor banks...I believe that besides a credit crunch now we have an insolvency issue, meaning many banks have a lot more debt than assets to back a possible bank run in the US.

Powell is replay of what happened about 2 years ago when some bank and financial services companies failed in California, leaving thousands of customers scrambling to withdraw their money out of their accounts.

How does translate in S&P 500 terms? Many of the mayor financial companies and banks belong to the index, meaning that this will lead investors to rethink their positions and start selling stock in such companies, adding to the falling prices of the S&P.

Well, that was the bad news. Now let's head to the good news... I'm sure that Powell and his banker-buddies will be able to come out with arrangement and save the day. So at first most likely the index will correct down, but eventually recover.

The levels I'm watching are 6,500 and 6,000. I believe these are excellent levels to start accumulation.