Please keep in mind when watching the overnight globex sessions, that they are the small investors, which do not control the markets. Most of the trades are 1 and 2 lot trades, which is why you see such dramatic swings, there is just no volume. Do not get too emotionally involved one way or another when you see a huge move at midnight, due to the fact that they are most often caused by small volume.
As far as the comment about throwing all the models out because it is different this time, I do not feel it is fair to criticize the bulls in stocks or RE who argue that it is different this time therefore prices cannot go down, yet use the argument that it is different this time to support why prices should go down. Which is it, is it different this time or not? If it is, then you cannot throw out the bullish arguments in stocks or RE, if it is the you have to grant them the possibility that the bulls could be right. If it is not different this time, the models of the past cannot be thrown out. I do not think it is different this time in either market, cycles exist, and they will play out.
