8/18/2015 – A down day with the Dow Jones down 33 points (-0.19%) and the Nasdaq down 32 points (-0.64%)
Investors are beginning to realize that there is something seriously wrong with the stock market. Mainstream financial media is starting to pickup on that as well.
Stock market bulls are playing with fire
By this measure, the current stock market is anything but healthy. The 10-week moving average of weekly readings recently rose to 5.7%, well above the level that many researchers use as the threshold for a “sell” signal. (Fosback, for example, set this threshold at 5%, considering readings above that level as evidence of “extreme market divergence and … bearish.” The threshold employed by Ned Davis Research, the Venice, Florida-based research firm, is 4.4%.)
That is indeed the case. Further, I have shown this chart before…..
Considering the analysis above, there are only two distinct outcomes at this stage. Either the stock market and/or our economic data stages a massive come back rally (I don’t see how nor why) -OR- the stock market is about to play catch up with economic reality. Unfortunately for all of us, there is quite a bit of ground to cover on the downside.
By the way, Marc Faber sees the same thing….
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. August 18th, 2015 InvestWithAlex.com
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