Five Stock Market Charts Bears Have Been Waiting For
As the bull market tries to enter its fifth year, many are wondering if it still has legs - but a handful of stock market charts warn there's high risk of a coming sell off. In fact, a recent report from Credit Suisse Group AG (NYSE ADR: CS ) outlined 10 technical factors that show the market is at its most risk-on level since just before the stock market crash that began in 2007's third quarter. "Many of our tactical indicators point to a consolidation phase in the equity markets, in the near-term," Credit Suisse Global Equity Strategist Andrew Garthwaite said in a note to clients. For a closer look at this bearish forecast, check out these five stock market charts pointing to a pullback. To continue reading, please click here...
As the bull market tries to enter its fifth year, many are wondering if it still has legs - but a handful of stock market charts warn there's high risk of a coming sell off.
In fact, a recent report from Credit Suisse Group AG (NYSE ADR: CS) outlined 10 technical factors that show the market is at its most risk-on level since just before the stock market crash that began in 2007's third quarter.
"Many of our tactical indicators point to a consolidation phase in the equity markets, in the near-term," Credit Suisse Global Equity Strategist Andrew Garthwaite said in a note to clients.
For a closer look at this bearish forecast, check out these five stock market charts pointing to a pullback.
Five Stock Market Charts Suggesting a Downturn
But there's little doubt the rising stock market is masking our long-term debt and spending issues. The question is just how much longer the market can rise before a serious correction occurs.
This chart is more evidence that euphoria is widespread among investors, even hedge fund managers. Their net long positions are nearing two-year highs and are much more bullish than their collective sentiments.
As you can see, the level of risky positions continues to rise and we have been more speculatively positioned only once - when stocks peaked in the middle of 2007.
The "risky" assets are copper, the GSCI commodity index (heavily weighted in energy), the Australian, Canadian, and New Zealand dollars, the Russian ruble, Mexican peso and an aggregate index of equities based in the three major U.S. stock markets and the Nikkei. "Safe" assets include gold, the VIX, the Japan Yen, the Swiss franc, silver and an aggregate of U.S. Treasury and eurodollar futures, as well as an aggregate U.S. dollar index.
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Tags: dow, Dow Jones, Dow Jones Industrial Average, NYSE, Stock Market, stock market charts, stock market live news, stock market news, stock market news today, stock market prices, stock market quotes, stock market report, stock market trend, The Biggest News from the Stock Market Today, the dow, the dow jones, the dow jones industrial average, U.S. Economy, Wall Street
"Many of our tactical indicators point to a consolidation phase in the equity markets, in the near-term," Credit Suisse Global Equity Strategist Andrew Garthwaite said in a note to clients.
For a closer look at this bearish forecast, check out these five stock market charts pointing to a pullback.
Five Stock Market Charts Suggesting a Downturn
- Equity sentiment indicators are near a two-year high.
But there's little doubt the rising stock market is masking our long-term debt and spending issues. The question is just how much longer the market can rise before a serious correction occurs.
- 86% of NYSE stocks are trading above 10-week MAs.
- Hedge funds' net long positions are now at the highest level since August 2011.
This chart is more evidence that euphoria is widespread among investors, even hedge fund managers. Their net long positions are nearing two-year highs and are much more bullish than their collective sentiments.
- U.S. credit risk appetite at historic peak levels.
- Speculative indicator position highest since 2007 Q3.
As you can see, the level of risky positions continues to rise and we have been more speculatively positioned only once - when stocks peaked in the middle of 2007.
The "risky" assets are copper, the GSCI commodity index (heavily weighted in energy), the Australian, Canadian, and New Zealand dollars, the Russian ruble, Mexican peso and an aggregate index of equities based in the three major U.S. stock markets and the Nikkei. "Safe" assets include gold, the VIX, the Japan Yen, the Swiss franc, silver and an aggregate of U.S. Treasury and eurodollar futures, as well as an aggregate U.S. dollar index.
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Tags: dow, Dow Jones, Dow Jones Industrial Average, NYSE, Stock Market, stock market charts, stock market live news, stock market news, stock market news today, stock market prices, stock market quotes, stock market report, stock market trend, The Biggest News from the Stock Market Today, the dow, the dow jones, the dow jones industrial average, U.S. Economy, Wall Street