Market Direction and Stock Trends

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== Salient Features of Bull Market Peaks ==
By John P. Hussman, Ph.D. | July 24, 2017

The salient features that have accompanied the most extreme peaks in the U.S. stock market across history, and the steepest subsequent losses, are already in place. These include offensive valuations on historically reliable measures, lopsided bullish sentiment, deteriorating uniformity across market internals (indicating a subtle shift toward increasing risk aversion among some classes of investors), and overextended market action (with the S&P 500 at record highs, pushing to upper Bollinger bands at daily, weekly, and monthly resolutions). The confluence of these salient conditions does not prevent further speculative extremes, and it always remains possible that the uniformity of market internals will improve in a way that signals a fresh willingness among investors to embrace risk and further extend this speculative episode. In the meantime, however, our value-conscious, historically-informed, full-cycle investment discipline provides us with no basis to join that speculation. . .

http://hussmanfunds.com/wmc/wmc170724.htm

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