Market movements are often times extremely difficult to rationally understand, or predict.
Yesterday's strong rally,right after the open, and continuing wire to wire to the close, on the back of a potential breakdown of US/China trade talks seemed to be all about the bulls doing what they always do.. buying the dip
However, now, a mere 24 hours later, it now appears the bulls have been done in, and even worse "trapped.". by their own premature buying yesterday.
Word that the trade talks were indeed really going bad last night, has caused the market to gap down strongly on the open this morning and take out yesterday's lows, all in one fall swoop. Ouch.
However you wish to look at it, this 48 hour market cycle does more than anything to simply illuminate the substantial risk inherent, that resides in the market everyday.
Expect more of the same, in the days ahead as the excesses are removed, like falling domino's... not hidden, but quite visible for all to see.
A failed breakout to all time high's in the S+P to 2954.13 last week is now directly responsible for this unexpected and sharp decline this week.
The fat lady, after waiting much too long finally. has her chance to sing.
It's not that at all. Ive simply borrowed an old show biz expression from 50 years ago.
There was a singer back in the 1960's. Kate Smith. yes in the music business which I love,
whose parody was "if the fat lady sings, then the good times are over"
jacobit
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Still riding this wave.
The depression took a span of 3 years. I've got time.