Hussman was saying the same thing back when we hit the last Yogi-Called Market Top.
From Hussman’s weekly report:
“While the S&P 500 has essentially gone nowhere since early January, the present overvalued, overbought and overbullish conditions, coupled with still negative economic pressures, suggests the potential for a familiar pattern of market behavior that I refer to as “unpleasant skew.” The short-term tendency in such conditions tends toward small advances to repeated marginal new highs, often followed abruptly by a steep “air pocket” that wipes out weeks or months of progress in the span of a few days. During the interim, however, it’s typical for 2-3 day pullbacks to to be followed by spike advances that do little but recover the lost ground, but that make the advance appear relentless. The average of numerous modest gains and a smaller number of steep losses may be negative, and yet, from a frequency perspective, there can be more up-days than down-days. Suffice it to say that we view the prospective return/risk profile of the market here as poor, but that assessment is based on average behavior.”
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