We're now in a "fat-tail" event. For those not versed in statistics - it just means we're in a highly unusual situation. For the statistically minded, the XAO is now 2.9 Standard Deviations below the norm in this fall based on a 25-Day sample. 3 SDs is unusual.
What does this mean? Maybe something - maybe a lot. There's no reason why the market couldn't have a 4SD fall or a 7SD fall. But, it put it mildly, that would be highly unusual. :)
The Relative Strength Index is now at a level last seen July 2010. And that started the current bull market after the sell-off in April 2010.
Many would be saying: "Sell everything. Head for the hills."
Maybe. Maybe they're right.
Today's action, with volume extremely high, looks like "get me out at any price" action.
That doesn't mean this is the bottom. But it's not far awary. Just my humble opinion. (And the market doesn't give a fig for my humble opinion.)
I'll be looking for a clear reversal to the upside sometime in the near future.
Good luck
Red
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