Correction...Correction...Correction
Good Morning Traders... we are faced with markets that we haven't seen act like this in months, its unusual to wake up and see markets open in the red and by this extent. It may be too early to call a definite market top but it has all the hallmarks. The market initially made a dash for the moon only to retrace off the back of Bernanke's outlook on QE, to me he didn't say anything unexpected but I think the thought of the day when Bernanke may implement a tapering of QE scared the markets.

We saw some significant moves into the US afternoon session and this selling pressure became aggressive when the Asian markets opened, at the time of writing the Nekkei Index is down 1099 points equilivant to 7% in one trading session. We have to take a step back and have a look at the fundamentals of the market and the psychology behind these big swings, yesterday may have been the start of a correction phase or it might be a small speed bump in the road higher we will have to wait and see.

The longer that this uncertainty continues in the market the more likely we are to see money taken off the table, don't forget we have come a long way over the last few months and nobody wants to see their gains wiped out over the course of a few trading sessions.

One thing that I would be looking at now, would be the safe heaven assets such as gold and bonds. We could see a rotation from the equity markets as investors look for a new safe home for the short term.

Happy Trading
@lowkeycapital