We are past the stage where this market will reverse in some cataclysmic, vomit inducing downside move that creates headline news while men in suits jump from fifty story buildings.
That is the stuff of cyclical corrections within a secular bull market.
As we are now in bear market territory, the manner in which we approach the market must change.
Being that nearly everyone has significant amounts of cash, awaiting the much touted capitulation move, there is a better than even chance that for at least this cyclical low, the low will come on a whimper, not a bang.
Well, that whimper just showed up this past week in the S&P, as we saw one the tightest weekly ranges in the S&P of 2022.
In the last note, titled Highway To The Resistance Zone, I clearly laid out the resistance area that we are now testing.
While the initial reaction was that this is likely another bear market rally, the subtle contraction of volatility that occurred this week may be suggesting otherwise.
There are other pieces of evidence, as well.
In short, it's time to don the bull horns, drop the cynicism and begin considering all the ways the bears can be wrong in the months ahead.
Hard to buy here? Damn right.
But that's the point.
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