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Showing posts from November, 2016

A Vector of No Magnitude

MAGNITUDE & DIRECTION In mathematics, systems of linear equations are used to construct complex spans that can shift across multiple dimensions.  In their most basic form, each construct is made up of a series of vectors which are basically line segments.  A vector, by definition, has two components - magnitude and direction. On Friday, the S&P closed down for the day - which by itself is not particularly noteworthy, except for the fact that it had also closed down in each of the previous 8 days as well.  This was the first time this has happened since 1980... a somewhat historic move in terms of duration. Since September, I've noted on this blog that the market was signaling an increased likelihood of a correction so the direction of the move comes as no surprise.  What has been surprising, however, is the magnitude of a move breaking below support levels... or should I say, the lack thereof. Going back to August of last year, the market has had two noteworthy corrections