10/5/2015 – A positive day with the Dow Jones up 304 points (+1.85%) and the Nasdaq up 74 points (1.56%)
Before we get to that, Bernanke: Wall St execs should have gone to jail for crisis I am really amazed at this declaration and the rest of the things Bernanke has said earlier today. This is equivalent to a Mafia Boss suggesting that his lieutenants should be jailed for committing murders on his behalf. Ironically, the FED/Street setup today is almost identical.
Now, back to the stock market. We had quite a rally since September 29th bottom. So much so that most of the indices are back to their break even point post the FED sell-off. More importantly, the market is somewhat confirming a double bottom and a reversal or 2011 pattern follow through. At least thus far and only on the S&P/Nasdaq. The Dow/NDX/Russell did not satisfy these technical requirements.
In other words, the development above could be argued either way. At least short-term. At the same time, longer-term picture remains a little bit more clear.
For instance, Credit Suisse: There’s a Growing Threat of a Major Top in the S&P 500
“We’ve obviously already had a significant fall in the stock market, triggered by the breaking down of the lows we saw earlier this year. The big question now is whether this is just a correction in a bull market,” he told us. In his mind, tumbling past 1,820 would signal that the market move could be something bigger. A “Dow Theory sell signal,” one of the oldest technical indicators around, was also triggered in August when the DJIA and Dow Jones Transportation Average fell below the low of a previous selloff, set in October 2014.”
And that is a Trillion dollar question here. If we are still in a long-term bull market, it would be a good idea to load up on stocks here. Yet, if we are in the early stages of a bear market, the recent rally is just a bounce. Which one is it? My blog post on Saturday, The Real Reason Behind Stock Market’s Recent Trouble, might clarify that longer term picture.
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. October 5th, 2015 InvestWithAlex.com
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