April 16, 2012, 1:45 p.m. EDT
Three major signs the bull market is ending
By Dr. Alexander Elder and Kerry Lovvorn
Marketwatch.com
1) First, two important reminders. Be aware that we are market technicians — we aim to recognize the patterns of crowd behavior on our charts. That's what we did last Thursday in our " Apple is a Short " post. Second, keep in mind that successful trading is based on three M's: Mind, Method and Money (psychology, analysis and risk control). Any analytic decision must be backed by the essential risk management tools, especially position sizing and stops.
This monthly chart of the Dow shows a set of severe bearish divergences: a trifecta of MACD Lines, MACD-Histogram, and Force Index.
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2) Turning to the weekly chart of the S&P, we see that in March, this index broke above major resistance at the level of its 2011 peak, marked with a dashed line. It could not hold above that level and closed below it on Friday, leaving in its wake one of the most bearish patterns in technical analysis — a false upside breakout.
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3) Our research shows that the weekly NH/NL rises to the level of +2,500 (marked here with a horizontal green line) only in bull markets and never during bear-market corrections. Failure to reach this level during a bull market warns that the bullish leadership is becoming narrow and the primary uptrend is in trouble.
more: http://www.marketwatch.com/story/three-major-signs-the-bull-market-is-ending-2012-04-16?dist=countdown
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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