Friday, August 21, 2015

Major trend line crossed

How many bear market signals can occur in one week?  In addition to my favorite trends and internal indicators turning bearish, and the S&P 500 index breaking out out of a six-month narrow trading range, it turns out that just today the S&P 500 finally crossed below a rising minimum trend line that's been in place for four years.

Even if this isn't the start of an official bear market (I think it is) there's little doubt that the four-year nearly-linear market rally from 2011 to 2015 is over, and the S&P has probably started a phase of slower gains, if not losses.

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