Readers of The Options Edge know that our preferred scenario for the overall equity market was a drop in prices of as much as 10% as defined by the popular averages like the S&P 500, Russell 2000, Dow Jones Industrial Average, NASDAQ 100, etc. then a rally that blows by the old highs. We expected this process to take many months and possibly as long as a year. In our estimation, we thought (and still do) that investors had gotten too complacent and that a swift and scary correction was needed to create the fear necessary to drive share prices higher.
