Back on September 26th we wrote an article in this column about the retracement tool. Like now the media was running around like a chicken with its head cut off because the market had sold off since its peak on September 14th, the day after QE3 was announced.
We noted in that article since June that pullbacks were retracing on average about 38% and 50% of their move. Occasionally, the 61% level was violated. Remember from our main webpage in the Morning Briefing section you can review old articles by clicking on Morning Briefing Archives. It is worth reviewing this article again.