SMLL - Are We There Yet? The Trough Of This Bear Market May Be Just Days Away

• This piece is a second sequel to our July 20 Seeking Alpha article (It's Still July, So Equities Are Still Rallying; August-September Will Be Calamitous, However).
• The first sequel on August 16 (It's Mid-August: Markets Are Topping Out: It Could Be Worse Than A Bad Seasonal Bear Phase), laid the foundation of the current bear market.
• The trough of this market sell-off, which has become an official bear market, may be just a few days away.
• If the Federal Reserve and the U.S. Treasury are the primary sources of monetary largess and succor to the financial system and the risk asset markets, it's imperative that investors should be tracking what these institutions are doing.
• We believe that the 10yr yield has not bottomed out yet, (which makes a bottom in equities last Friday unlikely) but may do so sometime during month-end and early October. That should coincide with a trough in the equity markets, followed by a strong market bull phase.

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