In the middle of last week, there were still pockets of strength.
Things like Financials and Europe were holding up great.
Then they both had their worst day in years. On Friday, they got absolutely slaughtered.
These massive failed breakouts in MSCI Germany and the SPDR Banks ETF really tell the story.
The bears finally came for these leaders.
And how about the defensive groups that have been showing relative strength all year?
Things like Healthcare, Staples, Real Estate, and Utilities. They seemed like a good place to hide.
Then they got crushed last week like everything else.
Low volatility stocks suffered their worst day and worst week since the pandemic lows.
At least we have gold, though. The yellow metal has been teflon this year. It’s the perfect safe haven for this market. Right?
Wrong.
Even gold is getting hit.
Silver got absolutely crushed last week.
So, what is left?
Let’s not forget about Bitcoin.
I was impressed with the resilience from crypto last week. BTC and friends have been holding up far better than the stock market.
Well, that all ended last night. It’s a sea of red out there.
They took BTC to fresh lows. Solana got blasted through that critical 120 level. It’s looking like a massive top, just like so many other things.
So what does it all mean? The fact there is nowhere to hide right now.
It means it’s definitely a bear market. But we already know that. It’s likely to be rough out here for a while.
What it also means is we must be damn close to a tradable low. There’s nothing left to break down. The bears took everything.
I like the action in the futures market coming into today’s session. Stocks have already clawed back a ton of losses. The S&P is up over 3% from its lows.
I think that could be the bottom for now. I think a big bounce is just around the corner.
