6/6/2016 – A positive day with the Dow Jones up 113 points (+0.64%) and the Nasdaq up 26 points (+0.53%).

According to quite a few bulls, the stock market is about to breakout. Finally.

US stock market is getting closer to a ‘melt up’: HSBC

Two major components of the S&P 500 could break out, according to the note sent out by Murray Gunn and team. They are industrials and the “FANG” stocks, composed of Facebook Inc., Amazon.com Inc., Netflix Inc., and Alphabet Inc. “The S&P 500 industrials sector has given a bull signal with momentum turning higher on the back of a positive cyclical trend indicator,” the analysts write, meaning that the slope of the 200-day moving average is showing positive momentum that could preface a further move higher.

Wonderful……right? Perhaps, but just as some analyst expect the most speculative stocks to surge higher, others see major trouble ahead.

Did the S&P just crush this ‘irrefutable’ sell signal?

I may disappoint permabears when I say this, but just because it happened twice before, doesn’t mean it will happen again. Also, no stock market signal is ever irrefutable.

Wow, as soon as it is not convenient, “doesn’t mean it will happen again” tends to come out. Perhaps. Or, is it as simple as this?

Investors paying too much for growth

I believe the reality here is rather straight forward. The Fed has distorted the markets to such an extent that things no longer make sense. For either bulls or bears. With the market flashing technical signals that both support a bull market rally or an outright collapse.

Which way will it go?

One think is certain, we are about to find out.

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. June 6th, 2016  InvestWithAlex.com

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