The market problem is liquidity. Meaning global money, including collateral flows and transformations.
We have as a result a negative reinforcing feedback loop underway between Liquidity, Volume and Volatility.
The Federal reserve will soon react with “signals” of reversing direction. We can expect to see a “Right Shoulder” market formation in the first half of 2019.
The market is likely to put in a “W” bottom in anticipation of this in the near-term before beginning building the “Right Shoulder” market formation.
4. We have a negative reinforcing feedback loop underway between liquidity, volume and volatility,