As if further evidence of the algo-driven maniacal market were needed, for the fourth time since this liquidity infused post-March 2009 ramp began, the S&P 500 has managed to correct after a similar length and magnitude move based on global central bank exuberance. What happens when SkyNet becomes self-aware of this pattern? Each time the ES has managed to pull back to at least its 50DMA.
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Each rectangle (as we have noted in the past and most recently warned yesterday) is the same size and scale - it seems there really is only so much 'extension' and 'pretension' that this market will stand before a quick reality check is necessary. This time, oil prices are different so beware...