SmartStops comment: Interesting perspective posted on by Doug Kass (TheStreet.coM) as to signals he’s watching.
SmartStops Mantra: ALWAYS STAY PROTECTED !
From the article: Since early August I have highlighted numerous technical divergences (in the weakness of the Russell Index (IWM) , new highs, the cumulative advance/decline lines, etc.), the schmeissing of the high-yield market (often seen as a precursor to stock vulnerability) coupled with growing evidence of weakening global economic growth (posing a threat to consensus corporate profit forecasts) and other factors (including valuation, sentiment and geopolitics) suggesting that a downward trend and (potential) bear market might be in the early state of developing.
History also shows that rising volatility in foreign exchange markets may be consistent with bear markets. (A good analysis by Nautilus Research can be found here.)
Economic weakness in Europe has been a worrisome factor that I have steadily highlighted.
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