{"id":73454,"date":"2025-03-30T00:00:35","date_gmt":"2025-03-30T07:00:35","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=73454"},"modified":"2025-03-30T00:00:35","modified_gmt":"2025-03-30T07:00:35","slug":"bear-market-reasserts-itself-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2025\/03\/30\/bear-market-reasserts-itself-the-market-breadth\/","title":{"rendered":"The Bear Market Reasserts Itself – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong><\/h2>\n\n\n\n

The S&P 500 delivered only a brief respite from the bear market when it broke out above its 200-day moving average (DMA) to start the week. Two days later, the bear market reasserted itself. Another two days later, the sellers punched an exclamation mark on the bear market as a “hot” inflation read<\/a> renewed concerns that the Federal Reserve will be unable to cut rates anytime soon. In between, there was an uneasy market calm in the wake of President Trump’s hefty tariffs on imported cars even as auto related stocks experienced a spike in volatility.<\/p>\n\n\n\n

Anyone following my Inflation Watch blog<\/a> knows that I am not one bit surprised by stubbornly high reports on inflation. I AM surprised the market reacted so violently to the report. I suspect the looming implementation of reciprocal tariffs and the fresh wounds of auto tariffs combined to pull stagflationary fears into the foreground. Financial markets have not faced the prospects of stagflation in decades, so it could take a good amount of time before the market moves on from these fears. I was hopeful that the “tariff flexibility” countdown<\/a> would feature a market rally into the April 2nd reciprocal tariffs, called “Liberation Day” by the President, before selling pressures resumed. Instead, this date now acts as a ticking time bomb for market sentiment.<\/p>\n\n\n\n