Stocks may have been rallying, but the bear market isn’t over for two reasons

The bear market is not over, according to a contrarian analysis of stock market timer sentiment.

That’s for two contrarian-related reasons. First, since the mid-June low, stock market timers have been eager to turn bullish, and that is more typical of bear market rallies than the beginnings of a new bull market. Second, the stock market’s mid-June bottom was not accompanied by anything close to the capitulation that often accompanies a major bottom.