After President Trump rolled out the trade tariffs in the United States, the S&P 500 went on a path lower, even breaching the Wall Street definition of a bear market (a 20% decline or more from recent highs). That seemed to give many agents in the market enough reason to start buying the dip, as investors will find out shortly.
However, now that the S&P 500 has left that bearish territory, there was no new money to be accounted for on the way up, meaning that the big players who got in at the bottom see no reason to risk more capital and chase a move higher. Evidently, several reasons present in today’s market suggest the bear market isn’t done yet, but that doesn’t mean everything is doomed.
