Just coming off Denial, early innings of Fear and I suspect we could still have a short period of to and fro between Fear and Denial.
Next phase of decline is when earnings validate the coming recession and the earnings recession narrative begins. Earnings season start end of next week. If earnings hold or guidance not bad, Denial gets another shot. If guidance from Mag7 especially is non committal or comes with caveats or forward growth deteriorates, then Fear will take hold again.
There was capitulation last night of a large degree, but without circuit breaks being triggered, what we saw last night is only a bear growl (not a bear maul).
