Was Monday’s new 52-week high in the Dow Jones Industrial Average the high for the year?
Are we in the beginning stages of a bear market?
I’m asking this because I simply can’t think of a single person who does think that. And I talk to a lot of people.
From a contrarian perspective, this is some scary stuff.
And I’m not talking about the permabears who are still bearish and have been during this epic four-year rally. I’m talking about the objective folks who have been on the long side of this bull market. Off the top of your head, are there many people you know who think this is the beginning of a bear market? A 20% or more correction? Anyone?
This obviously doesn’t affect what we’ll be doing today or tomorrow or next week. But as a technician who analyzes sentiment on a daily basis, this is definitely a rare occurrence. And the question is certainly worth asking.
Remember, when everyone is leaning one way, it probably makes sense to at least consider the alternative. In this case, I can’t think of many (or anyone) who thinks that a bear market is already under way. In fact, I’m just hearing and reading more about how we’re already in the next secular bull.
This to me is fascinating stuff…