1/13/2016 – A negative day with the Dow Jones down 365 points (-2.21%) and the Nasdaq down 160 points (-3.61%)
As the Dow Jones pushed into May 19th, 2015 Intraday high of 18,351 my subscribers knew that we were approaching an incredibly important long-term TIME/PRICE turning point. And while the clowns on CNBC were falling all over each other predicting the Dow 20K by the end of 2015, I was going 100% short. How We Nailed May 19th, 2015 Top -To The Day. A very difficult thing to do in an apparent “never ending bull market” cycle at the time.
And when the market staged a massive rally off of August 24th and September 29th lows, I have suggested that a number of charts or indices were not confirming this surge higher. Let’s take a look at some of these charts again and see what they are saying today.
Dow Transports: Is now in a clear bear pattern. The index has failed to rally off of August 24th low. What’s more, it is now confirming the Dow Theory bear market reversal. As does the Dow Jones. In other words, the Dow Theory is now saying that we are in a bear market.
Biotech and Small Caps: Highly speculative Biotech Index (IBB) and small caps represented by the Russell 2000 failed to confirm the rally off of August 24th low. That was not a good sign. As I have suggested on numerous occasions on this blog over the last few months.
Shiller’s P/E Ratio: Hey, take a look at that. Despite the recent sell-off, the stock market is still massively overpriced. Now at 4th highest valuation level in its history. Right behind 1929, 2000 and 2007 tops. And that’s before a massive earnings slow down the US Corporates are about to experience.
Charts don’t lie, unlike “CNBC experts”, and what they are saying is hard to swallow. Make no mistake, we will have quite a few short-covering rallies in the near future. Yet, the long-term tide might have shifted into something most investors are not prepared for. As the charts above suggest.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update.January 13th, 2016 InvestWithAlex.com
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Bear Market Is Being Confirmed. Here Is What Happens Next Google