My $.02
The precedant for corrections has been set time and time again. The bears are STILL in control until we break the 61% fib line ..and arguably unless we go to a new high !
Look at the past corrections and you can clearly see that most of the time there is a healthy bounce back up to a point which we are still not at ( but very close).
it took 24 days for the bottom to hit back in '06. That was an 8% correction
it took 30 days for the bottom to hit back in '05. That was a 7.5% correction.
it took 111 days for the bottom to hit back in '04. That was a 8.5% correction with a series of lower highs and lower lows.
I could go on and history backs up that THIS is too quick for a rally to resume !
We had a 6.5% correction over the past 16 days...now tell me... with the economy as unhealthy as it is..do we really think that this is over ? I dont...
And Im no permabear.. I just call it like I see it.
IMHO sell the bounces !
PS. Look at the longer term charts for China and Japan.. they are VERY toppy regardless of some short term strength recently. It only take one day to fall again...
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