The Dow futures are down close to 400 points as of this writing. To say that no one could have predicted such a “terrible” start to 2016 would be an understatement.
But, is this just a small correction as most bulls believe -OR- are we witnessing a bear market acceleration right in front of our eyes?
Here is an interesting chart to study……(click to make it larger).
If we are going to compare I would strongly suggest you study 1946-1949 and 1980-1982 periods. That is exactly where we are in the cyclical composition of the market. And if you are wondering what that means…….it simply means that most bullish dreams are scheduled to be crushed to death. To the tune of -45% if you take an average bear market return into consideration. And that is nothing to sneeze at.
