![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_RzRmL1BFlriHoFy1BWsmULdnqaNv0-ZNxY8XxmYnmzw11rM4AEsjmb1vOkULNp3llNwM2oC6eJvzQP9bEuWxPEPpcoGBE0v0EFTIlXTlz2ZByE3XHK4OIr6xeDJM-iUMVM4H/s400/ES111909d.gif)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFwNXp5ZZk5tTNB-p8shzf9q7w7ZGu1sOshu7sHEap4yU-OzE_EfaE4SPOHp3AW8t4Ke8osY4T5WEF-SAEuveXfyDwlvr8nJnGglWejz9vFtFLFZTFioyoCMNfZMEA2KeGvmUr/s400/Euro111909b.gif)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgT2gdodOS_0zjSIXqYc-Icf-AcDu4eaQ9yDyl0t8u4lgAJwTvocg-iiZUWiyclAFjlLvrX95yxaPeGxgONJiG4VWQpDN_I_h2U29fJhDk5zOIfmZIEOVFgP3oJ4Fn5krbeNrDz/s400/GLD111909a.gif)
From 12 N CT forward, it was easy to look for a second leg down in the ES futures (top chart). Note, however, that the correlated asset classes--euro (middle chart) and gold (bottom chart)--had already rallied and taken out their morning highs. That suggested that the drop in stocks was not part of a fundamental revaluation of risk assets (as I had hypothesized), but rather a "puke" stimulated by the break of the multi-day trading range. If that is the case, the current action is more likely to be a correction in an ongoing bull market, rather than a reversal of those bull dynamics (much of which are rooted in the weak U.S. dollar).
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