Bears Beware!A correction is coming soon. Maybe started this week. How low will it go? Nobody knows.
So many Bearish Posts. Permabears predicting cataclysm. The End is Near!
Doomsayers who repeatedly forecast massive crashes will eventually be right, once every 15-20 years.
Almost always these guys are just plain wrong. Markets exist to print money. Money prints when prices rise.
Stonks mostly go UP. Every ATH is preceeded by... a prior ATH.
Markets climbs a wall of worry.
Sudden sharp pullbacks and price declines are always a shocker.
But they don't last very long. Few weeks, a few months. Then it goes UP again. Correction of Aug-Oct 2023 was just 3 months, now look at it.
Here is something to consider. Overlay is from April 2020 - Jan 2021.
IF this entire move for past five months has been a First Wave after the 2022 bear, THEN we got a lot more pain for bears coming. Fib extension 1.618 = 6515!
It is certainly possible to enjoy another 20% rally following a correction.
The 2022 bear shaved over 1300 pips off SPX. At current index price closed 5117, we are just 6.5% above the 2021 ATH! Only six percent... after all this bullishness!
Lotta folks worry, "But we are already up 20%!" Well, actually we are up 6% here. The other 14% was recovery of lost value.
I do not foresee another bear market following on the heels of 2022. We should get a sharp correction and then prices will rise, again, as always.
Watch this correction, note the form it takes for clues as to what is next.
Election years tend to be BULLISH. Incumbents promote policy to support financial markets. Uncertainty surrounding the election in October gives way to relief rally in November.
