Unexpected correction, with nothing to explain it.
Things are not going very well. Clearly, I was wrong to expect a consolidation in the 1100 range and we can already say that what's really happening is very different. And first of all I must congratulate player GoodVibe who accomplished a task that was next to impossible by successfully calling what is, at the very least, A top, if not THE top. Hats off to those who can read it from tea leaves, animal entrails, stock chart, or any other paper or electronic media.
I am still in the bullish camp, and my feeling is that what we see now is a fake bear market, masquerading itself as a true Elliott wave, just enough to trick every technical analyst into selling all his long positions. The reason why I believe this is that a) the corporations are certainly NOT in a worse shape than they were in March, and b) the market makers can't hope to catch the bulls off guard now that leverage is out of the system and everybody who needed to hedge has done so. That leaves technical traders as the last remaining victim of manipulation, after the bulls and then the bears have been decimated. Having said that, I will not be surprised if we hit the March lows, GS willing.
Today was the sector rotation day; if the slide continues the next week, it should give more credence to the ultra-bearish scenario. Does anybody have an opinion as to the probability of retaking the 1100 high or the 666 low?