econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 07 February 2016

NASDAQ Breakdown Confirms Start Of Bear Market

by Erik McCurdy, Prometheus Market Insight

​Since June of last year, we have been monitoring the formation of a massive topping formation in the stock market that signals the likely termination of the speculative cyclical bull market that began in 2009. One week ago, we observed that the developing cyclical top had entered an important phase and noted that a weekly close well below critical congestion support in the 1,880 area on the S&P 500 index would essentially confirm the start of a new bear market.

This week, the S&P 500 index returned to the 1,880 area and continued to test that important support level.

However, the NASDAQ composite and NASDAQ 100 indices, which had been forming massive topping patterns of their own, were unable to hold at their corresponding critical support levels and experienced major breakdowns.

The long-term breakdowns of these topping formations have essentially confirmed the start of a cyclical bear market in the technology sector. Given the character of the preceding distribution pattern, the initial downside target for the developing cyclical downtrend is the 4,000 area on the NASDAQ composite, and it is likely that this level will be tested relatively quickly, probably sometime during the next few weeks.

Since the NASDAQ bubble had become the most speculative of all the major stock market indices, it is not unusual that it would break down first. Additionally, the negative divergence that now exists between the NASDAQ and the S&P 500 index suggests that the broad market will likely follow suit very soon. The monthly view of the S&P 500 index displays a classic long-term reversal that is beginning to gain downward momentum.

It is often said that "they don't ring a bell" when major tops or bottoms form in the stock market. However, the judicious study of market behavior through chart analysis does provide clear signals when long-term turning points are in place. The NASDAQ has clearly signaled that a bear market is underway, and the S&P 500 index will likely experience a similar breakdown very soon.


Author's note: We will identify the key developments as they occur in our daily market forecasts and signal notifications available to paid subscribers. To receive our market forecasts and signals, login and then upgrade to a paid subscription.


>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical Investing Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.




Econintersect Investing


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
Men Without Work
Slow Economic Growth Will Be Around For A Long Time
News Blog
The Best Hilarious Prank Ideas For April Fools' Day
February 2017 Pending Home Sales Index Improves?
The Need For Very Low Interest Rates In An Era Of Subdued Investment Spending
America's Missing Workers Are Primarily Middle Educated
The Share Of American Women In The Labor Force Is Slipping Even As It Rises In The Rest Of The Developed World
Infographic Of The Day: Which Countries Are Going In The Right Direction
Early Headlines: Asia Stocks Mixed, Dollar, Oil Up, Gold Down, Article 50 Day, Westinghouse Files Ch. 11, Trump Wants $1B To Start Wall, Russian Protests, China's $8T Shaky Debt, And More
Thirty Plus Terror Suspects And Convicts Not A Rare Occurrence In UK
The Winners And Losers In Trump's Proposed Budget
God and America (Version 3)
Corning's Glass Brimming With Taxpayer Subsidies
Who Americans Consider Their Greatest Enemies
Has The IPad Become A Sideshow Act?
Investing Blog
Investing.com Technical Summary 28 March 2017
The Dollar's Coming Impact On Markets
Opinion Blog
Free Immigration Is The Moderate, Common-Sense Position
Macron May Lead But Le Pen Remains The Big Story
Precious Metals Blog
These Gold Stocks Will Produce Much Bigger Gains Than Gold Itself
Live Markets
29Mar2017 Market Close: DOW Closes Down 42 Points, SP 500 Up At Close, Nasdaq Clearly The Winner Closing Up 0.4 Percent, Wall Street Investors Happy
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government































 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved