What You Ought To Know About This Scary Bearish Divergence

Daily Chart AMarch 4

3/4/2015 – Another down day with the Dow Jones down 106 points (-0.58%) and the Nasdaq down 13 points (0.26%). 

The stock market continues to behave as forecasted. If you would like to find out what happens next, please Click Here.  

Despite all of the recent bullish hoopla about the Nasdaq 5,000, soon to be witnessed Dow 20K, etc,…..an incredibly important chart below tells a different story. Let’s take a closer look.

Primarily, I want to concentrate on two points.

  1. The majority of the stocks out there have not gone anywhere since about July 17th, 2014 top. As my subscribers know, this was an incredibly important date as per my mathematical and timing work(I am not ready to talk about it on a free forum, but I might explain it in the future). Let’s just say this. It is not a coincidence that NYSE is unable to break above that top. Further, the chart below suggests that the higher highs we have seen on other indices might be nothing more than a beautiful mirage.
  2. As of today, the NYSE has failed in its attempt to break above this resistance line for the 4th time. Again, thus far. Should this failure stand, it becomes an incredibly bearish development for the overall stock market.

In other words, while 95% of market participants are dreaming of an eventual breakout and explosive run up to new highs, you might want to consider another possibility. The possibility of the stock market being in a period of  distribution over the last 8 months, in preparation for an eventual leg down.  If true, now would be a good time to get out instead of increasing your net long exposure. Better yet, it might be a good time to go short.

NYSE

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 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. March 4th, 2015  InvestWithAlex.com

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