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| | Bear Market Rallies |
 | | But, on the other hand, if the overall market trend is bearish, if the market is fundamentally overvalued, and if the overall economy is weakening, the odds are very high that any rally is simply another bear market rally playing off short-term market psychology aiming to lure unsuspecting investors to their doom. |
 | | The bears point out that bear market rallies are by definition extreme and spectacular, just like this one, so the bear market can lure more bulls to their doom as it slowly annihilates bullish sentiment. |
 | | In light of past market lessons, current market action, and the strategic market backdrop, the odds are vastly in favor of the bearish thesis that the current US equity rallies are little more than seductive bear market rallies that will ultimately collapse to new lows. |
| www.zealllc.com /commentary/rallies.htm (3151 words) |
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