The anatomy of an air pocket

Mid-week market update: I could tell that a panic bottom was near on Monday when how many people had lost their minds when the S&P 500 fell -3.7% from its intraday all-time high, both from my social media feed and emails (see A sudden risk-off panic). The S&P 500 rallied impressively on Tuesday to fill Monday's downside gap, and today's follow-up was equally constructive.

Despite the market's recovery, the bulls aren't out of the woods and downside risks remain. Here's why.

The full post can be found here.