Since Friday, I have been reminding Slopers about the shock event (down) which began on Thursday. With Monday’s bounce from Friday lows, there was some question Tuesday morning about whether the shock event could remain in effective. Well now, after Tuesday’s sell off, the answer is a strongly affirmative “yes, it can”. Let’s look at a possible chart analog for the developing shock event.
Possible Shock Event Analog (look back to January 2014 .. a near perfect match)
The current shock event and pull back nearly mirrors (exactly) the Dow’s pull back in January of this year. Sorry, that’s just eery. While I do not usually take this stuff too seriously, I will hold forth that sometimes the Universe delivers a message that cannot be ignored. That message today appears to be towards eager bulls, and it would be “Do not under estimate how far and/or when the markets might shock down again”.