Well here we have it. I wrote last Friday in The Sky Is Falling! that stocks were oversold and due to bounce within a couple of days. I believe the bottom of this selloff was hit just a couple of hours ago, at around 12:25.
Is the selling over? Yes, for now. As I discussed in greater depth a few days earlier in What’s Up With Stocks?, stocks are zig-zagging their way lower in dollar terms. This was the bottom of one of those zags.
But I believe the bigger picture is something technicians used to quaintly call a “bear market”. As we’ve discussed before, here at Financology we use the traditional meaning of the term to refer to a market that declines over an extended period of time. Bear markets are typically composed of a series of selloffs punctuated by intervening rallies. We’ve just concluded one such selloff.