Market At An Inflection Point
I did a post at Downside Hedge that shows several market indicators that are very close to signaling a bear market. The market needs to recover very soon or the long term trend will be changing from bullish to bearish. One of the indicators I highlighted was breadth between bullish and bearish stocks on Twitter. It is sitting at zero right now. A fall below zero will indicate a bear market. Read the full post a Downside Hedge for more info.
A few charts I didn’t include in the other post are 7 day momentum and intensity. 7 day momentum for the S&P 500 Index (SPX) is turning down from below zero. That’s never a good sign.
The volume and intensity of tweets is rising to a level that generally marks a short term low. But, if we’re in a bear market that behavior may not generate a significant bounce.
Disclosure: None.
The market may be at an inflection, but the economy is clearly already tipping and has been. The issue is the front part of the recession is offshore because so much of our commodities and production is offshore which gets hit first in an economic downturn.