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The current market environment continues to exhibit characteristics of a bear market or cyclical correction. Mark Minervini highlights that averages are trading below the 200-day moving average, with strong opens often fading by the close.
Minervini states that better price and volume action are needed before a reliable bottom can be established.
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Minervini has previously pointed to the importance of cutting losses short and trading selectively as key tactics for avoiding major drawdowns. Earlier this year, he also noted that a major surge in oil prices posed inflation risks but was unlikely to lead to a prolonged stock market decline. These comments provide further context to his current caution.