Has the Bear Market Begun?
Wednesday and Thursday will tell us if Tuesday was a bear market bounce or the beginning of a pullback rally.
As I pointed out last week after the market moved higher for a day that it was imperative that it follows through. It didn’t and prices dropped significantly into Monday. This is the same scenario here for today and tomorrow. No follow through likely means more days of selling and getting everything closer to confirming that a bear market has begun.
If it has begun there will be an abundance of opportunities on the short side and with options, along with selectively buying low volatility, high quality companies which pull back.