The advance-decline line broke its 200dma weeks ago (see previous posts). Now the DJIA is well below its 200dma (see above chart). Profits are falling as the economy is slowing down.
One more trend we found compelling - our proprietary indicators are saying financial risk is rising. This is trend particularly meaningful because all major bear markets (or corrections) have been accompanied by rising financial risk.
The fact that long-term Treasury bonds have strengthened suggests big money is looking for safety.
These are important bear market signs. For a detailed analysis of the financial and economic environment and a real-time read of our indicators please review the latest issue of The Peter Dag Portfolio.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Author, Profiting in Bull and Bear Markets
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