If we close this week in the red, it will be the first time since the cyclical bull market began back in March of 2009 that we have printed five consecutive red weekly candles. Every time that we have previously printed three or four red candles in a row, the market has been a screaming buy. However, the argument can indeed be made that “this time it is different.” After all, it was only yesterday that we appeared poised for a major breakout, and now we are seeing a nasty reversal today.
I suspect that we are actually going to see more mean reversion. Nasty breakdowns and exuberant breakouts alike will probably be faded. I am curious to see how this plays out. In the meantime, I am playing things so close to the vest that I can barely see my own cards.