Mr. TC has been spot on since May 6th's flash crash. Several turns have been well-anticipated.
And now, building technical weakness coinciding with a sideways trending market. Who needs an explosion sending stocks dramatically lower when there are but well-fed sharks with only each other to devour?
Apparently, over 70% of trading volume these days is a result of high frequency trading. If this is going to be cited as cause for May 6th's flash crash, then it truly must be a miracle the market doesn't crash every day!
I have nothing new to add to my very near-term outlook for "levitation" possibly lasting into next week. This is to precede what could be a nasty turn lower set to challenge March '09 lows in rapid order — a move that could evolve even over a mere matter of days.
Two weeks ago there was a great deal of excitement about the American Association of Individual Investors poll showing only 20.7% of investors surveyed were bullish stocks. Yet give individuals a technically weak rally and an endless line of dolts saying "There will be no double dip," and wha la: in two week's time 43.9% of those surveyed by AAII now are bullish.
Over recent decades AAII bullish sentiment typically has topped in this vicinity during prolonged, advancing periods lasting months and years. Now it takes just two weeks. Everyone wants to believe, and this despite every reason not to. You could not ask for a more appropriate investor psychology at this moment in a bear market whose end is nowhere near.
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