The Hook is Set
This is technical talk concerning market mechanics. The S&P 500 has had a smooth slow upward tilt since December 20 2011, and as we said previously, it is drifting higher without a solid footprint. Yesterday’s market action changes that formation into one where buyers become vulnerable very quickly. Yesterdays lows are now a key level. Just like fishing, once the hook is set, the market will bide its time as it gets ready to reel in the new buyers. It may take days, it may take longer, but the stage is set.