Compensating down move

As an ETF/index/security extends downward, it builds its obligatory counter-move. The faster it moves down, and the less compensated it is, the stronger the bias builds in the counter direction. The downward moves have been compensated, to the penny in most instances, as we go along. The builds the bearish bias. There is no bias left to the upside, it is compensating as it moves. This allows for further travel and always leaves open the potential for the monster gap.

The draw-back is once the upward move from March is compensated, we may not have an immediate bias in either direction. Then a true neutral market is established until the "dumb money" decide which way they want to extend the issue. When the extension begins, momentum trades will be the trade of choice, until we start reaching an extreme in sentiment.