In Thursday's post I 'warned' of a potential 'island top', and this morning the signal was unfortunately completed. We completely reversed the gains of the past four days at the open and are down almost 8% from the high 4 days ago.
Today will be critical to see if how much we can recoup from the downside and as a result should reveal if this is just a healthy pullback OR if this is a deeper correction. Many smaller traders use approximately an 8% stop loss on their trades, so if we move down much further the selling should start accelerating.
My assumption is that we will move up from here and that this is a buying opportunity, but I will not put my money where my mouth is, until I see evidence to prove this.