While so much extreme overbullishness had to be balanced by enough fear, almost no bear was surviving to tell the story and expect finally a blow of the Dow. Everybody was bullish, even the bears. Nobody was calling for such leg down, not even Harry S. Dent, the closest thing I have to a hero (although I'd appreciate if he could read some Austrian economics books...)
We are now back to levels first crossed in about mid-October 2009. This means that 7 to 8 months of market rise has be erased in just 2-3 weeks this May.
As I kind of forecasted last Thursday, the bounce on Friday removed the markets from their oversold position, paving the way for today's last minute drop. And with the 1070 support broken again on the S&P E-Mini, the next support at 1050 might not hold and we might be headed to 1030 before another relief rally can take place.
Wait & Pray