Stocks are breaking down because:
1) The bull run begun in April is more than overdue for a correction.
2) The Fed has signaled that it might not cut rates again in December.
Regarding #1, the bull run begun in early April has been ludicrous in its strength. It is NOT normal for stocks to go straight up. The mere fact the S&P 500 had gone 130 sessions without touching its 50-DMA moving average indicated that stocks were due for a significant correction.
Moreover, both high yield credit and breadth had signaled that the S&P 500 had more downside to go. This downdraft was signaled well in advance to those who were paying attention.
Which brings us to #2.
Multiple Fed officials have signaled that they are not on board with another rate cut at the Fed’s December meeting (December 9th-10th). This, combined with stocks being overbought and overextended above key moving averages, has resulted in the market struggling to rally.
Stocks are on the ledge of a cliff. What happens next is critical!
In this context, the #1 question for investors is whether the bull market has ended and it’s time to “sell the farm.”
To answer this, I rely on a proprietary indicator that has triggered before every major meltdown in the last 50 years. This signal caught the 1987 crash, the Tech Crash, the Great Financial Crisis and more.
We detail this trigger, how it works, and what it’s saying about the markets today in How to Predict a Crash.
Normally we’d sell this report for $499, but in light of its recent warning, we’re making 99 copies available to the investing public.
To pick up one of the last copies…
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research
