Most of our recent market studies have demonstrated that the stock market’s medium-long term outlook is bullish right now.
Here’s one for the bears. It’s one of the few serious warning signs right now.
As you probably know, the NASDAQ has fallen 1%+ 3 days in a row. This is very rare after the NASDAQ was at all all-time high. Most 3 day crashes in the NASDAQ happened after the NASDAQ had already rolled over. These sharp reversals are very rare.
There is only 1 other historical case in which the NASDAQ fell 1%+ for 3 days in a row after making an all-time high (other than the current case).
March 15, 2000, at the stock market’s top.
Is this study a guaranteed bearish sign for the stock market? No. I wouldn’t rely too much on market studies that are based on a historical sample size of 1
There will never be a market in which all the studies/factors are bullish or all the studies/factors are bearish. What matters is whether the majority of studies/factors are bullish or bearish.
Even though this study sends a warning sign to stock market bulls, the majority of market studies are bullish for the stock market’s medium-long term right now.
Either way, the stock market is exhibiting signs that imply the bull market only has 1 year left.