Don’t try to catch a falling knife, this famous adage in Wall Street for decades was more than ever true yesterday. Breadth was ugly with only 447 stocks advancing and 3209 settling down. At the beginning of the week, we observed a lot of activity from bargain hunters who should now regret to have tried to buy the market on dips. Market participants recognized yesterday that a deeper correction than expected took place and certainly, active traders, like hedge funds, were forced to reduce their exposure to lower the leverage they placed behind their bets. We consider, according to similar situations in the past, that we are in the middle of the downmove. From now on, our indicators should start to improve rapidly and we expect to observe the preliminary signs of capitulation over the next few days. The weekly sentiment survey among private investors has already shown some progress.