For weeks we have been warning not to trust the bounce in stocks.
The most critical item we were concerned with was the fact that the S&P 500, despite its massive bounce, had failed to regain its former trendline.
As we first noted back in early September, Bear Markets do not happen all at once. EVERY time a major top has formed and stocks have taken out their Bull Market trendline, we’ve had a bounce to “kiss” the line before the Bear Market really took hold.