{"id":13785,"date":"2015-10-01T00:50:10","date_gmt":"2015-10-01T00:50:10","guid":{"rendered":"http:\/\/researchandinvestment.com\/?p=1213"},"modified":"2024-04-18T04:54:39","modified_gmt":"2024-04-18T04:54:39","slug":"bears-out-in-force","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2015\/10\/01\/bears-out-in-force\/","title":{"rendered":"Bears out in force"},"content":{"rendered":"<p>Bears continue to dominate equity markets. Patches of support are visible across North America, Europe and Asia but this is likely to be a secondary rally rather than a trend change.<\/p>\n<p>The Russian bear is also playing up. This time in Syria. Senator John McCain sums up the escalating <a target=\"_blank\" href=\"https:\/\/goldstocksforex.com\/2015\/09\/30\/sen-john-mccain-on-russias-airstrikes-in-syria\/\" rel=\"noopener\">crisis in the Middle East<\/a> in this 15-minute video.<\/p>\n<h2>North America<\/h2>\n<p>The S&amp;P 500 respected support between 1870 and 1900, rallying toward another test of  resistance at 2000. The 21-day Twiggs Money Flow peak just above zero continues to indicate (medium-term) selling pressure. Recovery above 2000 is unlikely, but would signal a relieving rally. Breach of support at 1870 would confirm the primary down-trend.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"363\" title=\"S&amp;P 500 Index\" alt=\"S&amp;P 500 Index\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-01-spx.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p style=\"text-align:right;font-size:.9em;color:#999999;\">* Target calculation: 1900 &#8211; ( 2000 &#8211; 1900 ) = 1800<\/p>\n<p>The CBOE Volatility Index (VIX) holding above 20 indicates elevated market risk.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"363\" title=\"S&amp;P 500 VIX\" alt=\"S&amp;P 500 VIX\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-01-vix.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p><a href=\"https:\/\/www.nyxdata.com\/Data-Products\/NYSE-Volume-Summary\">NYSE short sales<\/a> remain subdued.<\/p>\n<p>Dow Jones Industrial Average is testing support at 16000. Long tails on the last two weekly candles and recovery of 13-week Twiggs Money Flow above zero indicate strong support. Breach of 16000 would confirm a primary down-trend but we are likely to see a (secondary) bear rally beforehand.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"363\" title=\"Dow Jones Industrial Average\" alt=\"Dow Jones Industrial Average\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-01-dow.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p>Bellwether transport stock Fedex continues to warn of a contraction in economic activity.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"363\" title=\"Fedex\" alt=\"Fedex\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-01-fdx.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p>And retail sales growth remains subdued.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"312\" title=\"Retail Sales and Core CPI\" alt=\"Retail Sales and Core CPI\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-01-retail.png?resize=525%2C312&#038;ssl=1\" \/><\/p>\n<p>A long tail on Canada&#8217;s TSX 60 indicates continued support despite the breach of 790. Declining 13-week Twiggs Momentum below zero indicates a primary down-trend. Recovery above 820 is unlikely, but would suggest a <a href=\"https:\/\/www.incrediblecharts.com\/technical\/point_figure_bull_bear_traps.php#bear_traps\">bear trap<\/a>.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"363\" title=\"TSX 60 Index\" alt=\"TSX 60 Index\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-01-tsx.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p style=\"text-align:right;font-size:.9em;color:#999999;\">* Target calculation: 800 &#8211; ( 900 &#8211; 800 ) = 700<\/p>\n<h2>Europe<\/h2>\n<p>Germany&#8217;s DAX signals a primary down-trend, but appears to have found secondary support at 9500. Recovery of 13-week Twiggs Money Flow above zero would suggest a bear rally.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"363\" title=\"DAX\" alt=\"DAX\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-01-dax.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p>The Footsie found strong support at 6000, with long tails and 13-week Twiggs Money Flow recovering above zero. Penetration of the descending trendline is unlikely but would warn of a bear trap. Breach of support at 6000 is more likely and would confirm the primary down-trend.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"363\" title=\"FTSE 100\" alt=\"FTSE 100\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-01-ftse.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<h2>Asia<\/h2>\n<p>The Shanghai Composite Index continues to test government-enforced support at 3000. Recovery above 3500 is most unlikely. Breach of 3000 would warn of another sharp sell-off.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"363\" title=\"Dow Jones Shanghai Index\" alt=\"Dow Jones Shanghai Index\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-01-ssec.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p>Hong Kong&#8217;s Hang Seng Index broke support at 21000, confirming the primary down-trend &mdash; signaled earlier by 13-week Twiggs Money Flow.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"363\" title=\"Hang Seng Index\" alt=\"Hang Seng Index\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-01-hsi.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p>Japan&#8217;s Nikkei 225 is testing primary support between 16500 and 17000. Gradual decline on 13-week Twiggs Money Flow suggests a secondary correction, but reversal of 13-week Momentum below zero warns of a primary down-trend. Breach of 16500 would confirm.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"363\" title=\"Nikkei 225 Index\" alt=\"Nikkei 225 Index\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-01-n225.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p style=\"text-align:right;font-size:.9em;color:#999999;\">* Target calculation: 17500 &#8211; ( 19000 &#8211; 17500 ) = 16000<\/p>\n<p>India&#8217;s Sensex found support at 25000 before testing resistance at 26500. 13-Week Twiggs Money Flow trough above zero indicates strong buying pressure. Recovery above 26500 would warn of a bear trap. Reversal below 25000 is less likely, but would confirm the primary down-trend.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"363\" title=\"SENSEX\" alt=\"SENSEX\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-01-bse.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p style=\"text-align:right;font-size:.9em;color:#999999;\">* Target calculation: 25000 &#8211; ( 26500 &#8211; 25000 ) = 23500<\/p>\n<h2>Australia<\/h2>\n<p>The ASX 200 also shows solid support at 5000, with rising 21-Day Twiggs Money Flow indicating medium-term buying pressure. Recovery above 5200 would indicate a bear rally. Breach of 5000 remains likely, however, and would confirm the primary down-trend.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"363\" title=\"ASX 200\" alt=\"ASX 200\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-01-xjo.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p style=\"text-align:right;font-size:.9em;color:#999999;\">* Target calculation: 5000 &#8211; ( 5400 &#8211; 5000 ) = 4600<\/p>\n<h2>\n<a href=\"https:\/\/goldstocksforex.com\/\" class=\"noul pagebreak\"><br \/>\nMore&#8230;.<br \/>\n<\/a><br \/>\n<\/h2>\n<h4>\n\t\t\t\t<a class=\"noul\" href=\"https:\/\/goldstocksforex.com\/2015\/10\/01\/gold-and-treasury-yields-decline-as-inflation-weakens\/\">Gold and Treasury yields decline as inflation weakens<\/a><br \/>\n\t\t\t\t\t\t<\/h4>\n<h4>\n\t\t\t\t<a class=\"noul\" href=\"https:\/\/goldstocksforex.com\/2015\/09\/30\/sen-john-mccain-on-russias-airstrikes-in-syria\/\">Sen. John McCain on Russia&#8217;s airstrikes in Syria<\/a><br \/>\n\t\t\t\t\t\t<\/h4>\n<h4>\n\t\t\t\t<a class=\"noul\" href=\"https:\/\/goldstocksforex.com\/2015\/09\/25\/japan-abandons-fed-style-inflation-targeting-and-targets-gdp-growth-instead\/\">Japan abandons Fed-style inflation targeting and targets GDP growth instead<\/a><br \/>\n\t\t\t\t\t\t<\/h4>\n<h4>\n\t\t\t\t<a class=\"noul\" href=\"https:\/\/goldstocksforex.com\/2015\/09\/23\/deflation-supercycle-is-over-as-world-runs-out-of-workers-telegraph\/\">Deflation supercycle is over as world runs out of workers | Telegraph<\/a><br \/>\n\t\t\t\t\t\t<\/h4>\n<h4>\n\t\t\t\t<a class=\"noul\" href=\"https:\/\/goldstocksforex.com\/2015\/09\/22\/australia-latest-smsf-statistics-finsia\/\">Australia: Latest SMSF statistics | FINSIA<\/a><br \/>\n\t\t\t\t\t\t<\/h4>\n<blockquote class=\"qtn\">\n<p>\nI think anybody who is a great investor, a good investor, a successful investor has to be a person who can be both aggressive and defensive&#8230;.. have enough fear to have the caution. But you can&#8217;t let the fear control you.\n<\/p>\n<p>~ Ray Dalio, Bridgewater Associates<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Bears continue to dominate equity markets. Patches of support are visible across North America, Europe and Asia but this is likely to be a secondary rally rather than a trend change. The Russian bear is also playing up. This time in Syria. Senator John McCain sums up the escalating crisis in the Middle East in &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2015\/10\/01\/bears-out-in-force\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Bears out in force&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[18,57],"tags":[64,251,507,818,947,1113,1362,1481,1644,2478,2535,2943,3010,3100,3503],"class_list":["post-13785","post","type-post","status-publish","format-standard","hentry","category-market-insights","category-stock-markets","tag-vix","tag-asx-200","tag-bse-sensex","tag-core-cpi","tag-dax","tag-dow-jones-industrial-average","tag-fedex","tag-ftse-100","tag-hang-seng-index","tag-nikkei-225","tag-nyse-short-sales","tag-retail-sales","tag-sp-500","tag-shanghai-composite-index","tag-tsx-60"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Bears out in force - the patient investor<\/title>\n<meta name=\"description\" content=\"Bears continue to dominate equity markets. 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Patches of support are visible across North America, Europe and Asia but this is likely to be a secondary rally rather than a trend change.","breadcrumb":{"@id":"https:\/\/thepatientinvestor.com\/index.php\/2015\/10\/01\/bears-out-in-force\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/thepatientinvestor.com\/index.php\/2015\/10\/01\/bears-out-in-force\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/thepatientinvestor.com\/index.php\/2015\/10\/01\/bears-out-in-force\/#primaryimage","url":"https:\/\/www.incrediblecharts.com\/images\/2015\/2015-10-01-spx.png","contentUrl":"https:\/\/www.incrediblecharts.com\/images\/2015\/2015-10-01-spx.png"},{"@type":"BreadcrumbList","@id":"https:\/\/thepatientinvestor.com\/index.php\/2015\/10\/01\/bears-out-in-force\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/thepatientinvestor.com\/"},{"@type":"ListItem","position":2,"name":"Bears out in force"}]},{"@type":"WebSite","@id":"https:\/\/thepatientinvestor.com\/#website","url":"https:\/\/thepatientinvestor.com\/","name":"The Patient Investor","description":"Smart. 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Failure would warn of another test of support at 1870, while respect would indicate continuation of the bear rally to test resistance at the high of 2130. Bullish divergence on 21-day Twiggs Money Flow indicates (medium-term) buying\u2026","rel":"","context":"In &quot;Market Insights&quot;","block_context":{"text":"Market Insights","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/market-insights\/"},"img":{"alt_text":"S&P 500 Index","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-14-spx.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-14-spx.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-14-spx.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":13786,"url":"https:\/\/thepatientinvestor.com\/index.php\/2015\/09\/24\/beware-of-the-bear\/","url_meta":{"origin":13785,"position":1},"title":"Beware of the Bear","author":"ColinTwiggs","date":"September 24, 2015","format":false,"excerpt":"This time it's not the Russian bear but stock market bears that we need to beware of. Signals across global markets warn of a major down-turn. North America The S&P 500 respected resistance at 2000, the false break warning of a bull trap. A 21-day Twiggs Money Flow peak just\u2026","rel":"","context":"In &quot;Market Insights&quot;","block_context":{"text":"Market Insights","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/market-insights\/"},"img":{"alt_text":"S&P 500 Index","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-09-24-spx.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-09-24-spx.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-09-24-spx.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":13788,"url":"https:\/\/thepatientinvestor.com\/index.php\/2015\/10\/22\/how-we-got-here\/","url_meta":{"origin":13785,"position":2},"title":"How we got here","author":"ColinTwiggs","date":"October 22, 2015","format":false,"excerpt":"If we don't learn from the mistakes of the past we will be destined to repeat them (George Santayana). Looking back over the last three decades gives an inkling as to what went wrong and to the level of economic mismanagement. International trade is a zero sum game: what one\u2026","rel":"","context":"In &quot;Market Insights&quot;","block_context":{"text":"Market Insights","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/market-insights\/"},"img":{"alt_text":"Current Accounts China & Japan","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-22-currentaccount-china-japan.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-22-currentaccount-china-japan.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-22-currentaccount-china-japan.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":13784,"url":"https:\/\/thepatientinvestor.com\/index.php\/2015\/10\/09\/bear-rally\/","url_meta":{"origin":13785,"position":3},"title":"Bear Rally","author":"ColinTwiggs","date":"October 9, 2015","format":false,"excerpt":"North America Construction activity continues to advance. The graph below shows Total US Construction Spending adjusted for inflation (Core CPI). Spending is substantially below the 2004 to 2007 property bubble but equates to the earlier Dotcom era. The steep rise suggests that rate increases will be necessary to prevent another\u2026","rel":"","context":"In &quot;Market Insights&quot;","block_context":{"text":"Market Insights","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/market-insights\/"},"img":{"alt_text":"US Construction Spending adjusted by Core CPI","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-08-construction.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-08-construction.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-10-08-construction.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":12283,"url":"https:\/\/thepatientinvestor.com\/index.php\/2015\/08\/30\/sp-500-dead-cat-bounce\/","url_meta":{"origin":13785,"position":4},"title":"S&#038;P 500: Dead cat bounce?","author":"ColinTwiggs","date":"August 30, 2015","format":false,"excerpt":"After Friday's narrow consolidation between 1970 and 1990, S&P 500 September 2015 E-mini futures broke support at 1970, indicating moderate selling pressure. Sound domestic economic performance is likely to ensure that the S&P 500 returns to its primary up-trend in the medium- to long-term, but upheaval in international financial markets\u2026","rel":"","context":"In &quot;Stock Markets&quot;","block_context":{"text":"Stock Markets","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/stock-markets\/"},"img":{"alt_text":"S&P 500 September 2015 E-mini","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-08-31-emini.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-08-31-emini.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-08-31-emini.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":12314,"url":"https:\/\/thepatientinvestor.com\/index.php\/2015\/09\/06\/sp-500-market-risk-remains-elevated\/","url_meta":{"origin":13785,"position":5},"title":"S&#038;P 500: Market risk remains elevated","author":"ColinTwiggs","date":"September 6, 2015","format":false,"excerpt":"NYSE daily volume and short sales declined Thursday & Friday, indicating selling pressure is easing. There is no sign yet on the daily chart, however, with 21-day Twiggs Money Flow respecting the zero line from below. Breach of support at 1900 would warn of another decline. 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