$30,000 Millionaire said:
So, is everyone bearish right now?
No. If you are, you're not seeing the forest through the trees.
We needed to cap off valuations before they got out of hand.
We needed a short sell off before we could go higher. A market that just keeps going based on nothing tangible feels more fake by the day.
New president from a party who sucks at economics and spends like money grows on trees (or printers).
FED that historically follows the market and does nothing but harm, since the correction they historically try to achieve with their actions has already been achieved by the market which "caused them to get involved."
Forward looking and overhyped pandemic recovery that had outgrown its basis.
Absolutely ridiculous focus on fake industries propped up by government that investors targeted (if we all predict what the government will favor, we can all get rich from the government stupidity!)
All of this has led to where we are now. And where we are now was always going to happen anyway before the pandemic. The pandemic sell off and bull recovery last year was an unpredictable wave that took the place of a wave that wasn't supposed to happen yet. But 4,200 - 4,300 S&P was always going to happen after a correction. And it still will.
The end of the never ending bull market is coming, just not yet. This is a correction. This is not a reversal.
I know some of y'all scoff at Elliott Wave theory (while rightfully praising Model T which is a slightly different way of calculating retracements). But it's primarily a mathematical and analytical tool for evaluating investor sentiment. Fibonacci isn't incredible and jaw dropping when it happens naturally in millions of different ways on this planet for no reason. And no matter how technological we get collectively, the markets still trade on sentiment and emotion.