80,000 is hanging by a thread. When should we close the 87,000 midline short?
Since September 22, I’ve been saying that when the market is extremely greedy, you should go short—and 87,000 was the best entry point.
I’ve reiterated several times since then that I’m still bearish. Now that we’ve fallen below 80,000, I’ll say it again: I remain bearish.
Will this mark the start of a bear market? And when will we bottom out?
First, this isn’t a bear market; it’s a deep correction within a bull market. Second, the medium-term bottom should be below 73,000. That’s the effective washout zone. Only a washout this deep can keep the cost of launching the second bull-market rally in check and leave room for the next leg up.
Since September 22, I’ve been saying that when the market is extremely greedy, you should go short—and 87,000 was the best entry point.
I’ve reiterated several times since then that I’m still bearish. Now that we’ve fallen below 80,000, I’ll say it again: I remain bearish.
Will this mark the start of a bear market? And when will we bottom out?
First, this isn’t a bear market; it’s a deep correction within a bull market. Second, the medium-term bottom should be below 73,000. That’s the effective washout zone. Only a washout this deep can keep the cost of launching the second bull-market rally in check and leave room for the next leg up.