The analysts are unanimous: Yesterday, we saw a “successful retest” of the October lows. The vast majority of market bottoms, everyone insists, have “successful retests.” So we’re off to the races again, right? Well, yes, unless we aren’t.
Are ALL “successful retests” followed by great bull markets? No. Are they ever followed by further market plummeting? Yes.
For instance, check out the “successful retest” that occurred in the summer of 1930, which retested the lows of the spring. For a few minutes, everything was safe. Then the already clobbered market fell by another 75%:
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