``Movements in financial markets were so volatile, so unpredictable and so seemingly detached from fundamentals'' that many hedge-fund managers ``didn't feel they had an edge,'' said Doug Peta, an independent market strategist in New York. ``The best thing they could do for their investors was to pull back entirely until markets returned to more of a sense of normalcy.''
That pretty much says all about this market. Day to day moves as well as intra day moves are very volatile. Friday was perfect example of that. In last half an hour or so we had 400 point move to downside.
At this stage the market is rage bound and after the October10th reversal, it has essentially traded in a wide range. However that low has held. In the meanwhile everyday truckload of bad news is released. The question is how much of the bad news is priced in at this level. Fresh bad news has had no major impact on the market. Which is bullish.