$SPX Bear markets can have powerful rallies in between. Look at
some of the history in markets overtime. Some waves can be really
powerful, 5%, 8%, 10%, 12%, 15%, and 20% all examples.
We are now at the bottom of the channel and deeply oversold.
Just like when stocks get too positive in bull markets they can get
too negative in patches during bear markets. I'm taking it one
level at a time though keeping an open mind each day.
$SPX Bear markets can have
Posted by fundamentalvalues on 10th of May 2022 at 08:28 am
$SPX Bear markets can have powerful rallies in between. Look at some of the history in markets overtime. Some waves can be really powerful, 5%, 8%, 10%, 12%, 15%, and 20% all examples.
We are now at the bottom of the channel and deeply oversold. Just like when stocks get too positive in bull markets they can get too negative in patches during bear markets. I'm taking it one level at a time though keeping an open mind each day.
Here's a note pointing to a possible 8-15%. That would be almost shocking at this point given the depth of the negativity. I don't even believe it is possible when I type it, though I need to be careful of recency bias on both sides: https://www.morningstar.com/news/marketwatch/20220507240/this-market-strategist-says-stocks-could-gain-8-to-15-from-here-giving-anxious-investors-a-perfect-opportunity-to-sell
A few more references: https://seekingalpha.com/news/3835815-stocks-oversold-enough-to-suggest-a-summer-rally
https://seekingalpha.com/news/3835711-jp-morgans-kolanovic-still-overweight-stocks