2940 high to 2340 low = 600 points. A 50% Fibonacci retrace takes you to 2640 area. You can reshort in that area, but, for me the best trade was the face ripping long play from 2340.
Here’s the thing, when we got the 10% correction 11 months ago, very few people seemed to know what to do. So I posted the stats on a 20% pullback. It seems very few people have learned.
Bear markets do not start with 20% corrections, they start when trendlines are broken. 2300 was the trendline.
At any market bottom you will have:
- A jump in VIX
- A lack of liquidity
- A plethora of negative news
Brownadder actually posted that he was looking for 35 on VIX to short. That was a near flawless call. The VIX is now 20.