Is today the bottom or are we going bearish? This kind of either-or judgment is really boring. The market is never a binary switch of black and white, but rather a continuous game of strategy.

At this position, it is basically the critical point for both bulls and bears: the bulls need to prove that they still have ammunition, while the bears need to show that panic can continue. The problem is that everyone is waiting for the other side to make the first move.

What’s truly interesting is that, whether today is the bottom or not, the next few weeks will be exciting. It will either be a violent rebound that crushes all the bears or a slow grind that leaves the bulls completely desperate.

I tend to believe that the current market sentiment has risen, and the cost of short covering is much lower than the cost of going short. However, this does not mean that today is the absolute bottom, it just indicates that the risk-reward ratio has started to favor the bulls.