The substantial selloff of the last three days begs the question of whether we are at the beginning, middle, or end of the down trend. The talking heads almost to a man/woman, say we are nearing an end. The biggest difference seems to be whether or not the market needs another leg down to "scare" investors before roaring back up. It is these prognosticators who take the cake because no matter what the market does, they are right as they proffer: "The market is going up...but it may go down first."
My opinion, for which I get a lot if inquiries whenever fireworks happen, is always the same, "I don't know." But I do have a trading system that goes with the flow (read: trend) no matter which way it is going. As many of you have realized over the past few days, that kind of approach leaves one issue on the table: How and when to take gains. If you're going to have a dilemma, what to do with profits is about as good as it gets.
Beginning, middle or end? Today the market recovered about 1/2 of what it lost yesterday. As for tomorrow...one day at a time.