Stocks rallied sharply Monday and Tuesday and a number of Real Money subscribers emailed me asking whether it was time to move back into stocks.
The question is understandable as I have been recommending a defensive stance since back in December 2021.
I penned a longer piece on Monday outlining many of the tools that technical analysts look for in trying to time a market bottom. Despite a two-day burst of buying perhaps pinned on hopes of a shift (i.e. pivot) by the Fed, I am not moved to declare that the bear market is over.
If traders felt that Monday was the start of something bullish and durable, I doubt that the market would trade off in the last 90 minutes of trading on Monday. A real low would have seen prices close on the high of the day.