Recent wide daily swings in stock market index prices are starting to raise concerns and opinions that perhaps a significant stock market correction is in the making.
Regular readers of my thoughts know that I pay a lot of attention to opinions expressed by Elliott Wave Financial Forecast, John Mauldin and Danielle Park. They all believe we are in a 15 - 20 year bear market in equities and that there will be one more major equity market crash to complete the cycle.
One long term chart I keep updated at stockcharts.com is displayed here. I use the SP500 as the major index to chart the 20 week and 40 week moving averages. Crossovers help identify when we are in bull and bear markets. The details are in the comments on the chart.
Click chart to enlarge.
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