CNBC is claiming “the market” has not seen 3 down weeks in a row since January 2010. I ran a weekly chart to cross reference this because it seemed impossible with ‘flash crash’, the tough summer of 2010 (pre Jackson Hole Wyoming) and perhaps the November selloff due to Ireland. I do see three down weeks last August in the S&P 500 chart right before Bernanke promised to manipulate asset prices upward via the QE2 era, so I think CNBC might be wrong. The same pattern goes for the DJIA.
Needless to say three down weeks in a row has become a rare thing. When we do sell off, it is fast and quick – and right after said selloffs we have “V shaped” rebounds that once were rare (pre 2009) but now are the rule.
Thus far we are off to a rough start to this third week of selloff, and have only three (and a half) days to make it up.
p.s. on the previous entry I forgot to write another strategy is to wait for a new low of the day now that we are in a few hours in, and jump in at that point on the short side. That would be a break of 1295….