Today’s action notwithstanding, Dennis Gartman believes that yesterday was indeed the start of a prolonged selloff, reversing the bull run that began in March.
Indeed, rarely do all 10 markets fall at all in unison, for there is usually one market that stands alone, if only for one day. Further, history has shown that when the markets fall in unison collectively right after making new highs it means that the shorts have been run in; that all buying has been sated and that a prolonged market downward trend is only just beginning.
This break will end when, after a great deal more weakness, we see prices collapse in unison again in a crescendo of selling. At the moment, we fear that we are only now seeing the beginning of this selling; that the public has only just gotten long after remaining out; and that they’ll not begin liquidating until prices are lower and their hopes have been dashed yet again.