Everything appears to be falling into place. Up until now, we’ve been assessing the current market situation based on pieces of the puzzle.
But now we’re finally gaining some clarity on what the whole picture looks like. And it’s all building up to one particular moment when we could see the very beginning of something big.
So as we fit the pieces of the puzzle together, take a look at where exactly it is that we’re headed, and what to do about it…
As you know by our recent columns, all of us here at Wall Street Informer have been tracking the progression of Wall Street as it nears the beginning of the impending bear market.
As far as we’re concerned, the bull market has actually been over for months now. The stock market has been in a transitioning phase.
To be perfectly clear, a transition can always lead to a brand new bull market, but it’s becoming more and more obvious that the next aspect of the cycle will be a downturn.
But not until the final climb…
You see, you can count on a few things to happen just before virtually any bear market begins…
1. A solid climb back up to recent trading levels (Jim Samson covered this in his column last week),
2. Investors sounding the bull market alarms one final time, and then
3. A peak.
And as this sequence of events unfolds, my aim is to keep you updated and alerted at every stage.
That’s why I want to show you the most recent piece of the puzzle we just discovered…
Above is the 3-year chart for the overall market index S&P 500 (SPX) from stockcharts.com. And those two blue lines are what we call trend lines.
With these lines, we can clearly see the turnover in the stock market from upward trending bull market, to the stalling transitioning market, to now the down turning bear market.
So here’s what I’m waiting for as what could very well be the final moment before a steep drop to firmly secure bear market status…
- A steady climb up to the top blue trend line, which would also happen to very near the long-term moving averages.
- A peak near the 2,000-level, where there’s a line of resistance.
If those 2 things happen, I’ll be ready to cash in big on my bets against the market. And subscribers of Midas Wave Alerts will be receiving my very best ones as they happen…
