The S&P500 has now corrected 28% from its January high and we simply believe enough is enough at least for this leg of the decline, this view is supported by investors’ sentiment hitting another bearish extreme, recently the AAII bearish consensus reached nearly 60%, a level not seen since the sheer panic of the GFC in 2008.
- We are looking for the S&P500 to challenge its August highs after reaching extreme bearish levels.
MM is bullish “risk” at current levels
