Well, sometimes the 13 week can be a stretch as financials get sold out with the rest of the market. This is now a classic capitulation wave 5 since we dropped far below the weekly Bollinger bands. Some financials such as Citi have still some downside potential but are in capitulation mode as well, since Citi dropped below 5 - which is a problem since some funds cannot hold stocks below 5. In any case, BKX should snap back next week.Today we had panic mode as stocks dropped with heavy volume over 7 % and we had a panic jump in bonds. Now we have the capitulation I was looking for and we even closed for the SPX below the 2002 lows. As tomorrow is Friday that could spill over into the week's close and the pressure is on for central banks to act soon. The Hedge Funds might have participated in the capitulation today as the sold-out positions. The VIX reached the 80 level again, which confirms panic from all angles.
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