A silver lining in the stock market's decline

As the stock market tumbles lower again, closing its lowest in 14 months, bringing us back to where we were in October '17, I actually see positivity in how it is playing itself out.

The markets may very well still be in a secular bullish current, meaning, long term is still going upward. This may very well be a short term decline amidst a longer term ascent.

As I wrote here last month, the SP500's long term trend line is at about 2380, another 6% lower from our current level. It seems very likely that we are headed there sometime in the next few months.

So what's so good about our current decline?

Understanding the nature of the beast, its sentiments and psychology:

The market has been climbing without much time to break for a breather for almost 10 years. Its normal to see the bears take over every 4 years or so, now its double that time frame and the market needs a break. The question is how long of a break does it need?

Historically, the market's down time leaves its mark on a certain year. Almost as though the market needs to leave its markings when it makes moves. A marking that could easily be detected is when it causes the year to end lower. Think about 2008 or going back a bit further we have 2000, "01 and "02.

If market bears are to derive the pleasure of having marked a decline of 20% they also need the marking on the wall in a clear and evident manner as having the year close lower.

If 2018 will satiate this animalistic sentiment by closing lower for the year so that sometime in 2019 we can continue the bull market, then so shall it be. This is better then 2018 closing flat only to have 2019 close lower and drag out the down turn that much further.