Where is the market correction?
The media becomes ripe with innuendo and speculation once the market starts tanking. They sell the news. There were many people mouthing off 5 % to 8% correction yesterday on major news channels. One thing you need to remember these are opinions- not facts- not anything close to being a market technician and they are not surveyor of charts and empirical data.
Its one thing what you feel and think and its is another thing what really happens beyond your control and thinking. Therefore predicting the future is filled with biases and speculation. Its not based on reality.
With that said, lets look at what happened today ? The market was definitely floating down meekly for the last 3 sessions.The selling was rather tepid and lethargic and not concentrated, fast paced, or even mildy furious. Today SPX opened up and for the first 15 minutes went negative, and below its 50 day moving average. That was the catalyst that ignited the bulls waiting below, and the orders started kicking in. The market never looked back from thereon and rallied hard above its value area.
If you look at the 15 min charts its a V shaped recovery. But it stopped at the downward trendline now controlling the whole pattern. We are still in a downward channel, unless we break above it, and that would signal a bullish breakout. Momemtum traders are already fixated with 1700 on SPX and 1000 plus on RUT. if bears fail to hold them back here , we should see those number sooner than later.