(Click on charts to enlarge.)
Yes. Rare, very rare.
Even rarer, was the fact that we first had capitulation selling near a market top. These spikes in hard selling, spikes in the VIX, when occurring near market tops, usually are only the "first shoe" to drop. Yet now we have the rare "double 9-1" days, essentially capitulation buying, so soon? The breadth indicators that we track, such as bullish percent indices, did not get nearly as "oversold" as they did in the summer of 2006. The charts of these breadth indicators show what good bottoms look like. The recent sell off looks like just a correction in an ongoing uptrend. So far.
