konhow

Bear Market or Short-term Sell-Off?

Short
CME_MINI_DL:NQ1!   NASDAQ 100 E-mini Futures
The March CPI was reported at 3.5%, higher than expected on April 10. This development triggered a sharp decline in the stock market, with a total drop of 8.5% from the recent high.

Could this downward movement signal the onset of a major bear market, or is this sell-off simply a retracement, setting the stage for the bull market to resume?

We will explore this question by studying the following hypothesis:

• A rising CPI is a leading indicator of a bear market.
• A declining CPI is a leading indicator of a bull market.

Micro E-mini Nasdaq Futures & Options
Ticker: MNQ
Minimum fluctuation:
0.25 index points = $0.50

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