First take a look at the 1 day chart, you can see that the Dow which was up about 500 pts could not hold its gains....it has never been like this in recent past. Then look at the 3 month chart to see where likely it is heading. Another down day overnight tonight, the next sharper drawdown is ahead.
Many US investors are mainly bearish, and just a few bullish. You'd say that's positive because markets dont tank when the level of bearishness sentiment is high. But it also reflects that the BTD force like we had before is no longer as convincing....market participants are generally more wary about 2022 given the anticipated rate hikes with one as soon as May if not sooner.
But yet market participants are just either doing one of two things. Shrug the downdraft off as we saw yesterday there's still money to be made, continue doing so until the storm truly and really comes...after all, we've seen many come and gone and markets continue their upward trend....OR just stay the course , since there's no where else to put your money (and I have already addressed this, that we can be in cash in transition never intended to be perpetual). The truth is that people are more angry about themselves for missing out on gains than avoiding losses (because when losses come, everyone drowns and share their sorrows together but during gains, it is sad watching on the sidelines while others are profiting, right?).
The question is: How nimble can you be? From experience, when the sharp downdraft comes, it comes really quickly and unless you are a non-procrastinator, you are more likely to wait to see what happens....then it gets worse and you're trapped. But it can come back ,right like it did in March 2020? Don't count on it because the Fed cannot afford to pour more money out now in a raging inflationary environment.
