Mr. Market follows our ROADMAP with eerie precision. As a target along the way we expected the market to fall through the airpocket and pause at the 38% retracement of the move since march 2009 (click on the ROADMAP link to see).
The tumble was one of the steepest in history (pls see our VIX_OSC) and has changed the character of the market earmarked by 90% up & down days in a back to back sequence. This can only be explained by lots of High Frequency Trading and disappearing liquidity.
The bounce now has shaped up in a symmetrically fashion with 2 x 71point rallies that carried the bounce right to the 38% Fibo level of the initial impulse down and also back up to the MAY 2011 High (see ROADMAP).Next targets could be 1225 and 1250 or we could flip right here......
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