My Indicator for the Larger Market gave a warning early last week. Since then things have gotten progressively more negative. Today, in addition to the warnings and few breakdowns, a P&F Pattern Triple Bottom Breakdown confirmed of what may be coming ahead: A CORRECTION of unknown magnitude as of this time.
Consider that 38 months have elapsed since the bottom in early March 2009. The record shows in general that Bull markets last from 22 to 33 months. If this is one of those cycles, it may be that the bull phase could come to an end. Or it may be just a correction in a continuing (secular?) bull market should we establish new tops in the months ahead. Or could a bear phase is about to start is if the usual 4-5 year cycle is assumed?
If we assume the latter, the correction could be deeper than the corrections we have experienced so far in this cycle.
A correction of many stocks appears to have started already and it seems to me that the fast expansion of the breakdowns in the components of my Indicator since last week (9 out of 17 total) is indeed a fast pace. This is rather a fast expansion and unless we begin to head soon in the opposite direction... (which I doubt if we assume what I stated above), could escalate into a bear phase in the weeks/months ahead. We shall see.
Just wanted you to be aware of what my Indicator reading at this time. The market can do anything.
Good luck to all
AI
