Quote from piezoe:
Yes we will have a big correction sometime in the future, maybe tomorrow or maybe two years from now. Who knows? I think it is most likely to come after the election.
But i do distinctly recall that long before the tech bubble burst, folks, especially old-time market hands, were warning that things were way over heated and we were cruising for a bruising. Those warnings went unheeded for many many months, or was it years, while the market went up up up. Its like the folks who predict the end of the world, they will always be correct so long as they don't try to predict when. If they do that, almost all of them will be wrong.
All of the crashes we have had so far were preceded by multiple warnings in the price-volume action and other signs that the market was on the verge of a cardiac arrest. I have not seen that yet, but i may have missed something, so trust your own judgment. All I saw today was a very steep pullback within a region of strong resistance on heavy volume. The market could be making a top and getting ready to tumble or it could be pulling back to garner strength for another knock at the door. In prior times if we pierced an old high by 25 S&P points we would say we have gone through the door and we are safely on the other side. But in a market where plus or minus 25 S&P pts in a day is routine, i think we have to expect a little more before we can say we've gone through. And we have only knocked twice so far.
