Here We Go Again?

On the 6th, before the open I posted the Volume at Price post. And, the market has since obliged by starting a relatively large three day correction. I put that post up because I saw quite a few people starting to feel their oats that we were off to some type of explosive rally. Weak trading systems. More likely no trading system and simply unsubstantiated opinion.

I've often remarked about my dislike for oscillators but I do use a few of my own within their limits of ability. In other words, I understand when they are telling me something I shouldn't be listening to. A limitation that clearly gets many in trouble. While everyone was bullish after breaking out on Monday, the above S&P 500 oscillator had just turned negative. There is a chance we could go back to retest the old highs set on the 6th, but beyond that there is a substantial amount of data that leads me to believe this could be another major correction that will, at the minimum, retest the November lows. We shall see.

In the mean time, enjoy that massive rally half of the talking heads are calling for.