Expecting A Turnaround Tuesday

I believe there is a good chance we will see a Turnaroud Tuesday tomorrow. It is amazing how  the market can never seem to turn on a Monday. Jeff Saut tries to explain the phenomenon in his weekly missive:
What tends to happen is participants go home and brood about their losses over the weekend and “show up” on Monday in selling mode, which often leads to “turning Tuesday” (read: recoil rebound).

There are some other gems in Jeff Saut's weekly missive this week.
What is interesting to me is that since last October 4th’s “undercut low” the chant from most investors has been, “We want a pullback to become more fully invested.” Now that we have the pullback everyone is in panic mode (again).

He also explains the concept of a selling stampede, which should be almost over:
Indeed, the Dow’s decline is now 22 sessions long. Such “selling stampedes” typically last 17 – 25 sessions before they exhaust themselves; it just seems to be the rhythm of the thing. This has been my observation over the years in that it takes this long to get participants bearish enough to finally panic and throw in the towel by selling their stocks. While it is true some stampedes have lasted more than 25 sessions, it is rare to have one run more than 30 sessions. Today is session 23 on the downside.

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