(9/1/22) Cheerleaders singing the praises of a bear market bottom, bullishness abounding, and high prices for equities were back...were wrong.
Turns out it was a bear market rally, after an assault on the 200-DMA failed.
Breaking the 50-DMA confirms the diagnosis of a bear market rally, indeed, as the same pattern we've seen for this year continues.
The markets' over-sold position provides an opportunity to rally.
Today will begin on a weaker footing, and September, remember, is typically a weaker trading month.
One silver lining--the volume in selling has been a little weaker than normal, which would be a sign of exhaustion by sellers.
We're suggesting using any rally at this point as an opportunity to reduce equity risk in portfolios, and raise a little capital.