In the prior three issues, we walked through our six-step “Check List of Trend Change” (CLOTC), which helps us identify major market bottoms. We concluded that of the six steps, the market had only checked the first two boxes: 1) go down so much, the odds of a bottom increase, and 2) begin to identify divergences of various sorts to indicate the downtrend was losing “gusto”.
While it is clearly good news that. . .