What? You have never seen a 12% drop in days? Massive thousand point reversals? How about on Wednesday of this week? Up 300 at 230 pm, only to drop 470 points by the close. How about gains cut in half yesterday with the NASDAQ giving it all back? We have a pattern. Big gaps to the upside but in the real trading session, the big money selling.
Today, of course…another decent size gap to the upside. Will this one hold? Don’t know. But if it does hold, it will give markets a chance to break out of this recent range and give markets a chance to move back towards the old highs.
We continue to believe the lows of 2/9 are damn good lows but must tell you, all these negative reversals makes one wonder whether it will be revisited. The market gets another chance today to hold one of these big gaps.