Guest Post by Sven Heinrich
A violent rejection in markets following a furious rally that began on March 23. Small caps rallied 10% in 3 days only to give it all away in just 2 days.
A coincidence? Hardly. Firstly the risk levels of this rally were well advertised in advance including on March 28 in “Answers”. Technical patterns forming then were already suggesting that the price levels just reached were a distinct possibility. And a furious rally to come that would be awe-inspiring was also suggested in the 1929 redux posted on the day of the lows. No rallies are more aggressive than bear market rallies and seeing April producing one of the most aggressive rallies in decades surely fits that script.
