Bull market in jeopardy: Wall Street veteran warns of potential downward spiral.

Wall Street veteran James Demmert warns that the stock market could resume its downward spiral soon, despite the recent rally that led it out of the longest bear market since 1948. Demmert cautions that many stocks in the benchmark S&P index are still "firmly in the downtrends, which is the hallmark of a bear market." He also notes that the recent rally has been driven by a narrow market leadership of mega-cap tech stocks, which is "not a sign of a quality rally or bull market." Demmert anticipates that the majority of stocks will start establishing an upward trend in the second half of 2023, but warns that investors should have some dry powder ready in the event of a near-term market correction.