Over the last eight weeks we've had the bears getting drawn in by a 30%+ rally.
Now that they've covered some or all of their positions, there is a chance they may getting suckered on this retracement.
With regret weighing heavy on their minds, and risk aversion brought on by a traumatized portfolio, this sell-off may well be inducing bears, who have bought in or who are still on the sidelines, to sell the sell-off. If this turns out to be only a consolidation, rather than a sizeable sell-off, they will again be exposed to the upside.
I don't know what will happen. But the market seems a master of preying upon ones greatest weaknesses.
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