Correction ahead if we go under 1503 on the SPX

This market seems to inject a healthy dose of fear every quarter.

Quote from jeffalvinson:

I am not suggesting that the SPX won't go higher this year.
However, healthy bull markets need at least one strong retracement each year before they can advance higher.
This clears out the weak hands so there will be a fresh money supply at long term support.
Remember the old market timers saying,
'When everyone's bullish, there's no one left to buy."
Meaning that everyone is fully invested and there is no side-lined money left.)
Strong retracements clear out the weak players.
Then when the market hits long term support, smart money starts buying creating a resumption of the uptrend.
The weak players jump back in (in fear of missing the next move up), which in turn fuels the prices higher and higher.
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I don't think the public retail investor is really participating yet. Their absence is glaring when you realize the lack of day to day momentum buying or selling. This market feels like it's mostly professionals and full time traders playing mind games with each other to see who is left holding the bag.

Having said that, there is a level at which they will have no choice but to participate in fear of not participating in the party. Fear and greed.

Quote from SiSePuede!:

So they sell and start buying almost immediately? How much do they sell? How much do they buy? So you think retail is done liquidating at the lowest levels now?

Their risk management dictates what exactly? How do you know this?

Sorry, but what you're saying is fairly ominous and vague and I don't understand how you have all of this knowledge as to how "smart money" operates and when their buy and sells are triggered and don't understand why they would sell and immediately turn to buy what they just sold only a fraction higher.
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