From an Existential Question to Another

What a difference a few days make! Only last week, the big question was still "Is this a bear market rally or is it something more, like a new bull market?". Now, the pressing question is "Is this a correction in the ongoing rally off the March lows or is this something more, like a resumption of the bear?"

The amount of anxiety,  joy, hope or fear with which the questions are asked usually tell you everything you need to know about the person's book. If hope was there in the first question, fear would be present in the second and vice versa. Although I'm sure there are those who, having waited until the S&P 500 broke out of that congestion zone around 880 to get long, have seen the index go up all the way up to almost 930 then reverse hard this week. As I'm writing this, we're back to the congestion zone (884). What the market does now should be very telling. Actually, how the market behaves here should go a long way toward answering both those vital questions.