Today played out pretty much the way we had anticipated with the panic sellers dumping everything they could get their hands on in the first 5 minutes of trading.
The reversal day I spoke about yesterday like the reversal day in August 2007 also came to be.
We also have some serious mathematical ratios in play here as everything seems to be panning out to the most likely scenario of this panic low put in today being a major intermediate term low in the market.
If this is going to be the case, then we will know shortly, as tomorrow the market should have a very nice rally and the equity indexes should form a morning star pattern.
Should this occur, it will be strong confirmation of an intermediate term low and a call for an increase in our equity exposure.
The heavy put buying today, even as the market moved sharply higher off the panic lows is indicative of a large amount of fear in the market and the longer we can keep that fear or even dis-belief of anything constructive on the upside, then the longer the market can move higher.
Make sure you take a look at todays chart as it really shows the true picture.