SkyNet Thinking Outside The Box

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.

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...