Its a broken market.
But anecdotally, I find through my personal interactions with every day adult investors that they have not flinched barely at all. Almost universally, this downturn has not much bothered the typical 401K invested person who doesn't much take interest in their accounts. They are not in panic mode like most of the Chinese mom and pops have been of late. In fact I have mostly heard laughter about having been ripped for an 8% 401K loss in a few days. Its weird. In any regard, no panic.
The market was sideways trending since 2014 in a tight range near the highs. That support broke. Prices plunged as a result and stops got crushed. But my hunch is that most retail are blissfully still in the market.
My guess is that we are probably in a wave 2 up instead of a wave [iv] of 1 down. Regardless, the market is at the mercy of the HFT's. Underlying liquidity is quite suspect.
Major Resistance is the key. And yet prices are still quite a ways from upper resistance despite the massive and historic 2 day rally. Thats just how far the market had dropped.
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