Here is where I think we are on the classic cycle of market...

Here is where I think we are on the classic cycle of market emotions.

A couple of points I think are important:

- In a move of this size capitulation isn't a one day event (though probably starts with one). It takes time to properly offload everything through fund redemptions, margin selling etc. Also capitulation selling needs to happen broadly across stocks and sectors - not all will arrive at this point at the same time.

-capitulation isn't the low point as a few of the historical charts Danube has been pulling out have shown. Time compounds the impact of loss and the realization that there will be no quick bounce leads to despondency.