Although we were minutes behind some excellent opportunitites to get short in the Mini-S&P and the Mini-Dow, their respective downtrends played out in ways that validated our bearish outlook in real time. The weakness in these vehicles represented an ostensible follow-through to the previous day’s sharp selloff, and so we were especially interested in determining whether the decline was strong enough to imply a resumption of the secular bear market. The jury is still out on that question, but there were nonetheless encouraging signs that this was the case.
