The stock market doesn’t wait for anyone, it doesn’t slow down to let you catch up, and it doesn’t care how much you just invested in something.
Instead, the market is like a vast ocean with currents and waves that move back and forth at its own will.
That ocean has just sent us another warning wave that we need to pay attention to. If we’re not careful, it could capsize us. But if we’re vigilant, the market could carry us to big money.
We’ve talked a lot through Wall Street Informer about the plateauing of the market in recent months. And that discussion is far from over as the stock market continues to retreat further and further without reaching new highs.
There’s no doubt that the current bull market has bean weakened significantly. Now we’re left out figure out if it’s dying day is near.
Here are some facts about the S&P 500 (SPX), which is a good representation of the overall market:
- The SPX reached a peak price of $2,130, and is now at around $2,070.
- Since that hitting that peak, which was back in May, the SPX has been unable to hit a new high after doing so regularly throughout much of this bull’s life.
- The SPX has now dipped below its long-term 200-day moving average several times since July, which it hadn’t done but a couple of times over the past few years.
- The SPX’s moving averages are closer to each other than they’ve been in years.
None of those points above should make you feel very confident in the life of this bull market. Instead, they should be warning signals.
That’s not to say that profits can’t be made betting on bullish trends. However, it may be time to start thinking about how to handle a flat market, and that means dusting off the short-selling notebook and getting ready to profit from share price decreases.
Don’t worry – profits are still there to be made. As long as there is movement in the market, that will remain true. All we have to do is pick out the right strategy for finding those profits.
