The stock market, measured by the S&P 500, is retesting the low of this bear market. Last week’s losses took the S&P 500 down 100 points, or 11%, from February 9 to Friday of last week’s close of 770, close to the November 20, 2008 bear market low of 752.

Retests are a normal part of making a stock market bottom. In October, we wrote that bear markets of this magnitude nearly always pull back after an initial relief rally – and that a retest of the low typically takes about three months. Of the bear markets since 1950, 10 of 11 retested. Only after the August 1982 low of the long bear market and recession did the stock market move steadily higher without retesting the low. Retests do no always revisit the prior low, but result in a …

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