well, we got the pullback I had been expecting and waiting for with the markets down between 2% – 3% today. As you probably saw from my previous posts, I was surprised it had not come 2-3 days ago. The markets continue to teach me patience, although it is so hard to have at times.
Yesterday was typical for the market … just when you are about to throw in the towel and suggest that maybe your analysis was wrong … the market does a whammy. Fortunately, I personally stuck to my guns on this one … whereas many people I’m sure bought at the close yesterday and were stopped out today.
Markets generally do not correct as aggressively as they did today, without continuing to go down further, so I would assume we will have a few more days of downward pressure, although I hope I am wrong here. If I am right, we might be setting up for a much longer term correction that will bring us much lower than the october lows. Again, I hope I am wrong, but the longer term charts of late are not implying much strength.
Just to provide an update to my intraday comment, the centerline continued to act as resistance, where prices shot above the centerline for about 10 minutes then immediately and just as aggressively reversed and proceeded to drop over 1% in the last 20 minutes of trading, closing at the lows of the day. Prices tend to be attracted to the centerline, then immediately get pushed aggressively away from it as soon as it touches. It reminds me of a middle school dance that I attended … where you would get the nerve up to go ask a girl to dance, then after the song was over you rocketed away from the girl … never to look back again … back to the safety of your ‘man friends’. 🙂
As of right now, I am assuming we will proceed lower … tomorrow’s end of day analysis should be more telling as to the future direction.