While today's price action is somewhat bullish with a green ending, overall it seems to me that the market dynamic has changed to be more bearish than bullish now.
Consistent with what I said here Underestimating overestimation, I saw this chart analysis. Pretty clear, the market has been way ahead of itself as of now! There are only too possibilities: either the stock prices are to come down to be more in line with the fundamentals or the earnings will have to go up a lot to meet the stock prices in the weeks ahead. With the liquidity tightening still ongoing, I'm not sure how the companies' earnings can go up sharply any time soon. So the most logic thing to me is to see the stock price to come down sharply.
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