Mark Hulbert: Stock investors are still too bullish for anyone to believe this selloff will spark a strong market rally

Short-term stock-market timers on balance have not yet thrown in the towel on their optimism about the market. This suggests the market must fall further before a tradable bottom appears.

It is surprising that the market timing community hasn’t become more pessimistic. It was perhaps understandable earlier this week when the timers were relatively sanguine in the wake of failures of smaller banks like Silicon Valley Bank SIVB and Signature Bank SBNY. Their failures weren’t as obvious a threat to the global financial system,…