Well, i come back weeks later and everyone is shouting out thier oppinions on what is the fundamental cause of this decline which was anticipated before the first leg even started. The true answer is non of what was stated, It is the 'mood' of the market was at a turning point. Regardless what news comes out, News or economic data almost always disagrees at peaks and bottoms with subsequent price action. Its only after the declines have started does the news and economic data try to catch up with the market because the reports that people wait for every month to help them anticipate market action is a RESULT of market action rather than the contrary. When people are optimistic, They regard bad economic data as irrelevent and look for reasons to buy which eventually strengthens the economic atmosphere, havent you ever read "Market rallies despite (insert favorite report)" .The opposite is true when people are pecimistic. These trends in market 'mood' are patterned and they happen at all degrees, YOU anticipate future economic conditions, not only that but with a high degree of confidence. This approach to the market has least room for failure. so instead of looking at things that are irrelevant to market movement focus on the underlying reason for market movements which is the markets mood. Learn the Elliott wave, It will be a brainteaser at first but once you get it you'll have it forever. It will certainly make you the best trader you can possibly be, But you'll never grasp it if you down let go of old beliefs, all that is is excess mental baggage that belongs in the rubbish bin of history.
Regards,
Ahmed Farghaly