The stock market eerily resembles price action in 2011

As the stock market whipsawed through last week, it fulfilled our expectation for a move lower toward the 2,600-point region on the S&P 500. And it has proven just how treacherous this environment has become.

When I warned, over a month ago, what a break below 2,880 could do to the market, I am glad many of our subscribers heeded my warnings. And for those who did not protect their positions, I believe you will likely have another opportunity to do so in the coming months when we see one more rally before the major decline takes hold.

You see, our primary expectation was that we would see a larger degree wave 4 correction take us back down toward the 2,200 region on the S&P 500 SPX, -1.42% once this wave 3 off the 2009 low completed.

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