There is a difference between a bear market and bear market behavior. I think we have the latter. It manifests itself in a simple fashion: good news isn't just ignored, it is a chance to get out higher than you should be able to.
Bad news is an excuse to sell at any price.
Horrible news means short until the cows come home.
That's the dynamic.
That's where we are.
That Walmart (WMT) or Home Depot (HD) or even Macy's (M) gets sold off means that people regard their quarters as the last good ones. They use the so-called late cycle rap as the dynamic that controls their thinking.
But in reality they just want to get out because they fear they will lose their shirt. They look at the charts. They are all bad. They look at the analysts, the analysts are no longer defending.
They are trying to get out alive, too.
Until things get oversold.
Until there are fewer sellers left and the sell programs can't destroy the market.
This is where we are.