How to spot a market bottom

March 19, 2022 at 13:56 PM EDT

Did the stock market make a meaningful bottom last week? Financial markets had been taking a risk-off tone coming into the week, but when the Powell Fed was slightly more hawkish than expected, the market rallied.
The S&P 500 was -14.6% peak-to-trough on an intraday basis in 2022. Ed Clissold of Ned Davis Research pointed out that the characteristics of cyclical bears and recession bears have been very different. Cyclical bears that don't involve a recession tend to be shorter in length and less severe in magnitude compared to recession bears, though "most non-recession bears include a recession scare".

Here are some ways of spotting a durable market bottom.
The full post can be found here.