Mid-week market update: The world is full of surprises. Not only was I beside myself when news of the Bragelina breakup hit the tape, I mistakenly believed that the stock market did not display sufficient fear to form a durable bottom (see the trading comments in Is a recession just around the corner?).
Last week, Mark Hulbert found that the bullishness of his sample of NASDAQ market timers had retreated but readings weren't at a bearish extreme, which suggested that a scenario of more market choppiness.
The CNN Money Fear and Greed Index had fallen to levels where the market had bounced before, but it could have gone a lot lower. Even if it were to bottom at these levels, I would not necessarily discount a W-shaped bottom where the index declined to the recent lows before rising again.
I was wrong. Life is full of surprises.
The full post can be found at our new site here.