Can We Rally Without Having Had Proper Capitulation?

Corrections, we had a few...

Most corrections do not exceed 10%, one third go to 20%, one in ten ends with a bear market. What is acutely missing from this correction is that capitulation feeling - one trading session where we really puke, and it truly feels like the world is ending. This does of course not mean that we cannot have bottomed, but it makes us a little less convinced of a sustained, strong follow-through from Friday's rally. Here are a number of observations on the theme of the missing capitulation.