Kobeissi Letter's 'Stealth Bear Market' Call Gets Boost as Nasdaq 100 Dips

The Kobeissi Letter is claiming vindication. The market research outlet says its October 15 report declaring a 'stealth' bear market is now being confirmed. According to the outlet, the Nasdaq 100 briefly entered correction territory last week.

In that report, The Kobeissi Letter laid out what it called a historic paradox. Its view: the S&P 500 is in a bear market even as the broader market remains in a bull market. The outlet published the call on October 15.

The term 'stealth' bear market implies hidden weakness beneath headline index levels. The Kobeissi Letter pointed to the S&P 500 as being in a bear market within a bull market. Now, with the Nasdaq 100's brief correction, the outlet says its thesis is playing out.

Correction territory for an index typically means a decline of at least 10% from a recent high. The Nasdaq 100 hit that mark briefly last week, according to The Kobeissi Letter. The outlet did not specify the exact size of the drop in its post.

The Kobeissi Letter's report adds to an ongoing debate about market breadth. The outlet says the Nasdaq 100's brief correction confirmed its thesis. The S&P 500 remains the key index in its bear-market-within-a-bull-market call.