Nothing But Classic Bear Market Action

In my past couple of missives, I said that markets were rallying right back into resistance. This is the "normal" action that occurs in bear markets. To review: When markets gets extended and stretched from the norm, eventually they move back toward the norm before resuming the major trend. In this case, the trend remains down. But that is "the trees" -- that is, the anticipated bounce as well as the stalling at resistance. The forest is simple: This remains a very bearish market -- not only here but across the globe. Let's pick it apart.