What is Wrong with CNBC Scenario

The majority of the talking heads on CNBC keep talking about a successful retest of the January 22nd low establishing a bottom and then the bull market will resume.  Problem one, in our opinion this is a Bear market and the bottom is a long way away in terms of price and time. Problem two, if the market got down to the January 22nd lows it would just wink and keep going down, starting another leg down.  What this leaves is a market with a lot of bulls remaining, they have sold some of their positions out and want to buy these positions back on the retest.  The market is teasing the bulls, moving sideways.  Eventually some favorable fundamental news will come out and the bulls will buy back their positons between 1385 and 1460 basis the S&P 500 and we will have the pivot point for another leg down.

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