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Every major move to the downside is often followed by a smaller move in the same direction, a test of the market’s resolve. That is why I cannot say the bloodbath is over just yet. If the market reacts poorly to this next move, it could mark the end of the current mini-bull cycle. But if it responds with caution and patience, it may pave the way for a reversal to the upside. It is always the irresponsible use of leverage that puts this market at risk, and honestly, I believe regulators should step in to impose limits on such practices.
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