"Interesting, given that US Markets are on fire". Hmmm on fire is a bit of a stretch...I would say performing better. It hasn't taken much of a move to cause a reversal to a Bull Market Cycle. Yes there's been some love for the "small"companies recently but still only 58.34% of the NYSE stocks are Bulls the rest are still Bears. Mind you a couple of weeks ago there were 42% Bulls so the sudden rise is encouraging which has caught the attention of the Trading Analysts and hyped up by the various medias. If you look at the chart below there is always sudden rises and falls during the period of bull and bear cycle corrections and Market cycle reversals. The question at the moment..Is Wall St cyclic reversal back to a Bull Market cycle real?
Attachment 14637
"...wondering whether the drop of the NZX50 might have anything to do with the expected demise of PEB (for some funny reason they are still part of the NZX50), EBOS pain and some other issues quite unrelated to the general market mood?" Could be any number of things including stuff not yet on the radar..Me being a Pleb I will probably be the last to know..That's why I use TA.
"I am wondering whether the market signal might be a false flag" ...Maybe, TAers call this behaviour either a bull trap or a bear trap.
"it always could turn into a self-fulfilling prophecy?"..Yes that's possible...Humans (especially investors) have this misconception that we are a species better than the animals, unfortunately we are hot-wired at birth with animal (survival) instincts..so we as humans can stampede just as good as the buffalos if not better..I think we just as good as doing the Lemming thing too :). Unfortunately TA not nature gets the blame.:p.
"What I am saying is - if everybody stops buying, than guess what is going to happen?" Stock exchanges close down, Share Brokers go extinct and all investors move on from Equities towards the next best investment... Just Kidding :D