Is that what people were thinking today, that what they so enthusiastically bought yesterday was a mistake?
Or was it that the masses fell for the umpteenth time to tricks of pumpsters and dumpsters?
I do not know, and it does not matter.
S&P filled the huge gap of euphoria that it had opened on January 28, and closed below it.
Breadth was really bad. Volume was below average, which may give the stunned bulls something to hang on to. On the other hand, this, IMO, is still a bear market, and volume spike is needed on a selloff to clear the system for a counter rally.
From Tuesday’s close to today’s close, nothing has changed where index levels is concerned.
Will the bulls find it in them them to gather their pieces and bid the prices higher?
Notice that yesterday’s peak had retraced 50% of the drop from January high.
Today’s action has so far retraced about 50% of the rise from the January low
VIX bounced off its support area
I still think that index has a chance at higher prices. It needs to hold the 850 area, and absorb selling shocks.
From an Elliot Wave point of view, we need clean waves that unfold to the upside, which has not been the case in the recent advance.
Food for thought: since index Yo-Yo’s through 850 with relative ease, is that level really relevant, or are some mysterious agents just using it to shake people free of their coinage? It is a level regarded as important by all but Martians, is it really that important?