The market has been in the intermediate-term bottoming process since the increased fear of Fed and Trade created the initial extreme oversold condition on 10/26. Like other interest rate and global growth corrections this cycle, the retesting environment and bottoming process is totally demoralizing and could continue to worsen until investors (1) hear a more dovish interest rate outlook from the Fed on Wednesday, and (2) get confirmation from our rally requirement indicators. We continue to be in a holding pattern until our rally requirement indicators suggest the next leg higher has begun. Until then, containing emotion may be the biggest challenge. Please take a look at the most recent macro posts for context if you are new to the site, especially today – Rhyming while retesting.
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