TraderWise

The current situation reminds me of a period from the middle of 2007 to the middle of 2008. Many analysts were forecasting a credit crisis, but there weren't any "dead bodies" and no one knew when the storm might hit. During that time, the market was in a general decline, but there were many decent rallies. Earnings were good, employment was solid and the economic news was stable. On the surface, everything was fine and nerves were easily calmed when bullish news hit the market. Once Countrywide and IndyMac failed, the tone changed and sustained selling began.