“How are the fundamentals so bad but we are only down 15%?” This
bear market is full of FOMO from the bull run since 2010. The fear
of missing the low is outweighing the fear of a prolonged decline.
For this reason, it will still take a limit down day in
$SPXto form a bottom.
From a pure technical viewpoint - the move into 3810 was just 3
waves (zig zag) and that doesn't support a bottom so maybe a 4th
wave flat or triangle (since we had a symmetry break).
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Kobeissi Comments - Recency Bias
Posted by steve on 26th of May 2022 at 05:56 pm
“How are the fundamentals so bad but we are only down 15%?” This bear market is full of FOMO from the bull run since 2010. The fear of missing the low is outweighing the fear of a prolonged decline. For this reason, it will still take a limit down day in $SPXto form a bottom.
From a pure technical viewpoint - the move into 3810 was just 3 waves (zig zag) and that doesn't support a bottom so maybe a 4th wave flat or triangle (since we had a symmetry break).