After exhibiting strength most of the day, the markets seriously rolled over in the last 25 minutes.  The internals were pretty strong until then. It was definitely a low probability turn around.

Normally a market fade like that will be exposed in advance by weak breadth and volume. The only thing that exposed this one was the megaphone pattern that formed on a 5 minute chart during the day. The late breakdown was just the pattern doing its job.

However, a pattern is not a guarantee and this size pattern shouldn't have been able to overcome the positive internals by itself. It needed some help and I think I know where it came from.

By my count,  last Sunday, April 19th was what's called a "Martin Armstrong Cycle Turn Date". I'm not going to go into a lot of detail, and it is somewhat of a controversial topic. What you need to know is this: it's a 2.15 years cycle turn (which is 1/4 of a larger 8.6 year cycle turn, which is part of a larger cycle and on and on) There are specific dates for these turns and the last one of this magnitude was February 27th, 2007. Go back and check to see what the market did that day and the ones following it. It wasn't pretty. In fact it was very similar to Monday's collapse.

This is a topic I may write more on later, but for tonight just know that the cycle turn may generate the power needed to bring about a significant correction to a market that has appeared bulletproof.. 800 is a real possibility. I'd still buy it though as I believe the market has higher to go before it eventually goes lower.

There's one more thing I should point this out. The turn date doesn't necessarily mean "up" or "down". It just suggests something may occur, and since the markets are currently overbought, down is more likely.

So watch out for potential fireworks tomorrow and the next few sessions. Monday was the first day we felt the effects. I doubt it's over just yet.