As tubal said the bear markets go through 3 psychological phases, First I've had no idea on what he really meant but now we're experiencing it, Still I'm confused to decide at which phase we are now in? Certainly not the Denial cuz many have recognized this as a bear market, but is the concern phase starts now, or is it the end? For me it's more like the start of the concern phase as many hang on and others buy as for them it's discounted!!
During this phase the fundamental news significantly worsens and investors realize that that a bear market is in force. This is the phase of concern.During this phase many investors sell, but others hang in, feeling that the bad news is discounted and that a bottom is near.
At this point the market may rally again as many observers feel that the decline has ended and that a new bull market has begun. This rally, also characterized by weak breadth and low volume, subsequently fails and heads down.
-http://www.fxstreet.com
If it the start of the concern phase we might see a rally again, yet small with low volumes.
So what do you guys think? Any ideas on this issue? Do yall think the market is at its highest discount and the bull is waiting?