A Major Technical Indicator Warns of an S&P 500 bear market….But it brings good news
For the first time, a technical indicator that has warned correctly in the past of an impending harsh bear market in large cap stocks has just signaled that the large capitalization S&P 500 will now commence its own bear market. Could the technical indicator be wrong? It could be; but historically, it indicates a 30% or more downside.
We have seen approximately half of all publicly traded stocks already having corrected at least the 20% which (according to some) classify those stocks as having suffered a “bear market.” Many have been slaughtered. A Bear market? Note what most mining stocks have endured, 70% to 90% declines during their bear market.
Good News? Yes, as most of us are investors in mining and commodities related stocks, A BEAR MARKET IN THE INDUSTRIAL STOCKS IS ALMOST REQUIRED TO HAVE A BULL MARKET IN GOLD, SILVER AND MINING STOCKS.
And major cycles, if they occur close to their “projected schedule” are forecasting a major long term bear market commencing this year in the industrial stocks and a major long term bull market in gold, many commodities and mining stocks.
Could the bear market be late in arriving? Yes, as the market has been supported by artificially low near zero interest rates and “intervention.”
Worth noting is the fact that in two recent weeks, officers and directors sold over $400,000,000 in value of their personally held shares. Those are huge amounts and far above the normal rate. Thank you