The Bearish Case Is Almost Invalidated - Are The Bears About To Get Crushed In 2023?

The market appears very close to invalidating the bearish case. It looks like those bears out there will get hurt in 2023. That’s what happens if you follow media and experts as opposed to charts and data points. Our 2023 forecasts were clear: there are bullish reversals happening, not bearish reversals.

Moreover, we shared lots of factual data that confirmed there will be no market crash in 2023 and that 2022 was not like 2008. Premium members received many more detailed charts, such as those seen in our article, "Must-See Charts: Q1/2023 Will Be Crucial, 7 Timing Conclusions, 2008 Comparisons."

Market sentiment was horrible in 2022. The consensus about the market was mostly bearish, as ‘everyone and his uncle’ suddenly became stock market forecasters. One of the common themes was the ‘analogy’ between the charts in 2008 and 2022, suggesting a big move lower was imminent.

This was not so on our charts at least, as they did not suggest a bearish setup like what was seen in 2008. That could be because we are not here to collect clicks, likes, and re-tweets. We are instead here to bring the best possible chart and market analysis.

On the day that SPX was ‘breaking down’ and the bears got excited about their bearish forecasts, we wrote: "The Market Will Not Move 50% Lower Contrary To What The Gurus Are Telling You," which was published on Oct. 14. The market moved higher since the moment we published our article. Being contrarian requires a lot of courage, which is only possible if you get your charts right.

That being said, here is the ultimate data point that will confirm if and when the bearish case will get thrown into the garbage bin: the VIX. As seen throughout the past year, the VIX tested the 19-level three times in 2022. It is now testing that level once again.

Frankly, this chart looks bearish to us. This implies bullish price action for the markets. Whenever the VIX falls below 19 points, whether that's next week or in the coming months, the bearish case would prove to be invalidated and confirmed.