For the last several weeks, the bulls and bears have been battling at a key technical level. We also continue to hear loud cries from economists that a recession is coming. Does this mean that the bear is about to reawaken?
While the S&P 500 has been able to regain the 200-day moving average this year, it has done so with very little breadth. There have really only been a handful of stocks that have pushed the main indices higher this year. Right now, these broad indices are very much still in a key battle zone.
We also see some chinks in the economy's armor. Perhaps the economists will finally be right and we will see a recession in the coming quarters.
To that end, we look at history. There are some similarities between what we've been witnessing and the 1973-74 bear market.
We are not predicting. We are merely letting you know that we are prepared. We are prepared for either scenario.
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