Stocks Might Get Stuck In 2008 Trading Range

What the stock market is doing is playing in what could be a protracted trading range, says technical research from MKM Partners. But watch out, ghosts of 2008 could abound.

Extreme bearishness led to 2008 trading range short rally, but bulls should not get their hopes up

Two weeks ago, market pessimism reached an extreme – a key bullish sign. “Bearishness and downtrends often go hand in hand, just as optimism often reigns in uptrends,” MKM Partners Chief Market Technician Jonathan Krinsky wrote in a Feb. 21 report titled “Equilibrium… For Now.”

Does this mean that a bottom has been put in? Has the “all clear” signal been...