Since the March 2009 low, this correction will be the toughest test for the bulls. From high to low, 1217 to 1051, we went down 166 points. That is over 13%. The technical damage sustained from such a correction will not be easily overcome like in July 2009, October/November 2009, February 2010. We will not go straight up off this correction like the others. So we need to throw away the playbook from the previous corrections over the past 2 years. This is something new, more vicious than the prior corrections, but not a repeat of 2008.
We will likely continue this short term rally into Tuesday. I remain long.
Subscribe to:
Post Comments (Atom)
Posts
1 comment:
I think the tough test today was getting the DAX above its 200 day MA, which it did. It's imperative the US doesn't sell off from that point that we left the DAX.
Post a Comment