On Monday (2/22/11) the Dow dropped 178 on high volume — high volume meaning institutional selling.
On Tuesday another drop, just not as severe, as the Dow dropped only 107.
On Wednesday some small investors sold stocks, anticipating a correction. I too thought the market was going to correct — I even jumped the gun and stated this in my article Market Goes into a Correction.
Wednesday was the day people capitulated. Some sold a bunch of good-to-great stocks. Some did the wholesale sell, which means sold everything at whatever price they could get.
By Thursday the Dow dropped around 100, then rebounded. By the end of the day top stocks were up and the momentum turned up.
Today (Friday) we are strong across the board. Top stocks continue to jump as these companies are beating the street and upping guidance. As of now the thought of a correction has subsided, but not before shaking out a few weak links.
