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Bears you aren't in Kansas anymore
DC John

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.

  1. 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.
  2. The market starts higher and ends lower during the day. This is a sign of a downtrend.
  3. Equities as an asset class are under distribution. Trend lines and lower lows and lower highs illustrate this.
  4. The recent price plummet  is one of the worst Dow Jones Industrial Average point drops in history. This is not bullish.
  5. 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.
  6. Even Central Bank intervention can’t take markets higher.
  7. Stock indexes under the 30 RSI are in parabolic downtrends.
  8. Up days are on low volume, down days are on high volume.
  9. No good rally goes unpunished with lower lows.
  10. Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria”. – John Templeton.

Euphoria has left the building.