This Rally Will Likely Fail, Earnings Revision Cuts Likely In Early Stages

Beware of this rally. My work suggests that oversold tactical bounces like we experienced this week should be faded, not bought. I don’t think we are in “hide under your desk” markets either. However, based on research it is tough for me to envision a scenario where equities have a sustained upward move during a downward revision cycle, which my key indicators are signaling is still only in beginning stages. My next downside target range of 3600-3500 that I’ve been talking about is stil...

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