Why haven’t stocks fallen? This is a stupid question, to my mind. Stocks are always bullish. They never discount downturns until they are obvious to everybody and they are always ready to discount the upturn. This has happened in every downturn that I have seen from the 1980s until today.
This is why we see the sharpest moves in the shortest time frames in stocks. The stock market is not smart, it is ruthless.
The recent failure to fall in stocks is typical. Though I will add, there have been powerful bearish rotations from cyclical to defensive with some duration thrown in.
