.....uptrend begets uptrend, downtrend begets downtrend. That's how it is.
....those who have not stepped aside yet, now have some concern that lower brings more lower, because they know where valuation is at, at the back of their mind.
....when markets overshot, we usually ignore it because the trend is your friend; but when the trend is no longer your friend, you start thinking about all those things that you should have thought of when markets overshot (valuation, overextended gains).
....as this thread mentioned numerous times, in an overcrowded room, you don't want to the last one in when the lights are switched off.
....the problem with this decline is we have to hope that it remains orderly....it can remain so until it suddenly does not.
We just witnessed history: It has now been 352 trading days without a 2% down day in the S&P 500, the longest stretch in 14 years. This is also the 10th longest streak in the history of the stock market. With the election and Fed in the spotlight, we have seen multiple daily drops of 1%+ over the last couple of weeks. Periods of low volatility are almost always followed by periods of high volatility.
