In last Tuesday’s Technically Speaking post, I stated:
“From a purely technical basis, the extreme downside extension, and potential selling exhaustion, has set the markets up for a fairly strong reflexive bounce. This is where fun with math comes in.
As shown in the chart below, after a 35% decline in the markets from the previous highs, a rally to the 38.2% Fibonacci retracement would encompass a 20% advance.
Such an advance will ‘lure’ investors back into the market, thinking the ‘bear market’ is over.”
Chart Updated Through Monday
Not surprisingly, as we noted in this weekend’s newsletter, the headlines from the mainstream media aligned with our expectations:
So, is the bear market over?
Are the bulls now back in charge?
Honestly, no one knows for certain. However, there are