As shown in the chart above, all indicators remain extremely overbought and the market has not even reverted back to the long-term moving average as of yet. While the markets may indeed rally further, it is quite likely the correction that began on last week is not complete as of yet.
Furthermore, after such a long period of low volatility, the sharp decline in asset prices is one week FELT much worse than it actually was. This is the important, and often missed, point about “passive indexing.”
