TRADING TOM BOWLEY

[TREND1]

The breakdown in early 2008 began the series of lower highs and lower lows that are experienced during a bear market. Until that breakdown occurs, the prior series of higher highs and higher lows remain intact. That's why, for me, I need to see the confirmation or the bridge, if you will, from a correction to a bear market.

A correction and a bear market start from the exact same level - the bull market high - and in the same exact manner. There's no need for anyone to differentiate between the two because they both begin the same way with increasing volatility and panicked selloffs. It's what happens after the intial selloffs that determines what we're dealing with.