Bulls, you aren’t in Kansas anymore.
The 2009 – 2015 stock market uptrend is gone. I am basing this not on my personal opinions or predictions, but what I see on the current charts.
Here are 10 facts that show that we are headed down.
- All stock market indexes are trading under their 200 day simple moving averages. Bad things happen under the 200 day; this is a sign the long term uptrend is broken.
- The market starts higher and ends lower during the day. This is a sign of a downtrend.
- Equities as an asset class are under distribution. Trend lines and lower lows and lower highs illustrate this.
- The recent price plummet is one of the worst Dow Jones Industrial Average point drops in history. This is not bullish.
- Increasing volatility and expansion of the daily price range is not bullish, it shows uncertainty. A VIX in the 36-50 range is not bullish, it’s dangerous.
- Even Central Bank intervention can’t take markets higher.
- Stock indexes under the 30 RSI are in parabolic downtrends.
- Up days are on low volume, down days are on high volume.
- No good rally goes unpunished with lower lows.
- “Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria”. – John Templeton.
Euphoria has left the building.