Hey Sive,
Hope you are enjoying the holidays.
Technically, everything makes sense. The Butterfly "SELL", which was the pattern used to enter the LONG trade to complete the weekly 61.8% target and daily 100.0% target has failed which allowed us to realize something was wrong with bulls and market has confirmed that today.
My question is, fundamentally, what is the reason behind this? With the fiscal cliff averted, shouldn't that be a major trigger for upward movement?
Also, from around December the 18th until now, it seems as though context has been changing everyday as you have mentioned. Is there a reason behind this? Was it because of the uncertainty of the fiscal cliff? Would the month also have something to do with it? Being December markets were probably a lot less volatile which created more difficulty for traders?
Thanks!