By www.thetrader.se [3]
The sell off was just a bump in the road then? With people suddenly experiencing more volatility, many investors are suddenly caught in the greed and panic mood yet again. The sharp sell off caught many by surprise, and while some have trimmed their longs, others still engage in chasing the market higher.
The Trader suggested yesterday that the sell off resembles last year’s action. [4] With everybody having learnt over the past months, buy the dip, we are getting that perfect “panic” buy bounce. Now, let’s see who gets the upper hand here.
Chart comparison below.
SPX in 2012.
SPX in 2011.
and this is what happened after the bounce in 2011....
