The latest rally is giving off Q1-Q2 2019 vibes – both periods were preceded by sharp price selloffs and a period of consolidation before strong moves higher. We noted in our Markets Year Ahead report how the current bear market drawdown mirrors that of 2017-2018 in many ways.

This would support the narrative of an “echo bubble” in 2023, a topic we discussed in our latest Bull vs. Bear episode.

If this market rally were to follow that of Q2 2019, it would imply further upside ahead. But caution is still warranted until major macro headwinds have officially abated.