Bulls Will Be Wiped Out

Summary: necessary conditions for a Federal Reserve bailout of stocks are not in place yet and far from being in place.

Anything can happen in the short-term, of course bear market rallies happen without any Fed intervention.

Having said that, here is a paywalled article at ZH:

ZH: "80% Chance Of Dread": Every Time This Happened Before, The Fed Bailed Out The Market

Unless inflation risk is eliminated, the Federal Reserve cannot save the stock market. Or it could save it in nominal terms, but it would hyperinflate the U.S. economy. With the protests outside Supreme Court justices over Roe v Wade...it's frankly absurd to even think the Fed would try to do it. They are stupid, but not that stupid.

The only way it can be done in current conditions is direct buying of stocks. If they went the traditional QE route, bonds would collapse in a panic and the stock market would be below 1000 by next year. The Fed would have to print enough money and pump it directly into stocks such that stock prices outrun double-digit inflation and brush off soaring interest rates.

Maybe a bailout is coming. Maybe the world is still trapped in the QE-economy 2008—20?? That scenario involves a collapse in commodities and stocks ahead. Since commodities have barely moved yet, the major indexes would probably have to test March 2020 lows at a minimum. If inflation/commodities don't come down, then it is a bear market for sure because no rescue is coming.