{"id":13786,"date":"2015-09-24T00:54:26","date_gmt":"2015-09-24T00:54:26","guid":{"rendered":"http:\/\/researchandinvestment.com\/?p=1215"},"modified":"2024-04-18T04:57:11","modified_gmt":"2024-04-18T04:57:11","slug":"beware-of-the-bear","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2015\/09\/24\/beware-of-the-bear\/","title":{"rendered":"Beware of the Bear"},"content":{"rendered":"<p>This time it&#8217;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.<\/p>\n<h2>North America<\/h2>\n<p>The S&amp;P 500 respected resistance at 2000, the false break warning of a <a href=\"https:\/\/www.incrediblecharts.com\/technical\/point_figure_bull_bear_traps.php#bear_traps\">bull trap<\/a>. A 21-day Twiggs Money Flow peak just above zero indicates (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\/2015-09-24-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) is holding above 20, indicating 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\/2015-09-24-vix.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p>NYSE short sales spiked up close to 1.2 billion on Friday, September 18th.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" width=\"525\" height=\"381\" title=\"NYSE Short Sales\" alt=\"NYSE Short Sales\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-09-24-nyse-shortsales.png?resize=525%2C381&#038;ssl=1\" \/><\/p>\n<p>13-Week Twiggs Money Flow crossed below zero on the (S&amp;P 500) weekly chart, warning of a 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\/2015-09-24-spx-w.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p>Dow Jones Industrial Average is testing support at 16000. Decline of 13-week Twiggs Money Flow below zero warns of a primary down-trend. Breach of 16000 would confirm the signal.<\/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\/2015-09-24-dow.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p>Canada&#8217;s TSX 60 retreated below 790, confirming a primary down-trend. Declining 13-week Twiggs Momentum below zero strengthens the signal.<\/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\/2015-09-24-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 retreated below support at 10000. Decline of 13-week Twiggs Money Flow below zero again warns of a primary down-trend.<\/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\/2015-09-24-dax.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p>The Footsie is in a similar position, with 13-week Twiggs Money Flow below zero. Breach of support at 6000 would confirm a 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\/2015-09-24-ftse.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<h2>Asia<\/h2>\n<p>The Shanghai Composite Index continues to test (government-backed) support at 3000. Recovery above 3500 is most unlikely. Breach of 3000 would warn of a 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\/2015-09-24-ssec.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p>Hong Kong&#8217;s Hang Seng Index bear rally failed and the index is again testing support at 21000. Breach would confirm the primary down-trend signaled 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\/2015-09-24-hsi.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p>Japan&#8217;s Nikkei 225 is having difficulty breaking resistance at 19000. Gradual decline on 13-week Twiggs Money Flow suggests medium-term selling pressure, but reversal of 13-week Momentum below zero warns of a primary down-trend.<\/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\/2015-09-24-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 respected resistance at 26500. Reversal below 25000 would confirm a primary down-trend. 13-Week Twiggs Money Flow holding above zero indicates medium-term buying pressure.<\/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\/2015-09-24-bse.png?resize=525%2C363&#038;ssl=1\" \/><\/p>\n<p>But 13-week Twiggs Momentum below zero warns of a 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\/2015-09-24-bse-tmo.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 displays medium-term buying pressure, with rising 21-Day Twiggs Money Flow. But this is unlikely to withstand global bearish forces. Breach of 5000 would confirm a primary down-trend. Recovery above 5300 is most unlikely, but would indicate a bear rally.<\/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\/2015-09-24-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\/09\/24\/gold-no-flight-to-safety\/\">Gold: No safety here<\/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\/crude-at-30-per-barrel\/\">Crude at $30 per barrel?<\/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>\nDeleveragings go on for about 15 years. The process of raising debt relative to incomes goes on for 30 or 40 years, typically. There&#8217;s a last big surge, which we had in the two years from 2005 to 2007 and from 1927 to 1929, and in Japan from 1988 to 1990, when the pace becomes manic. That&#8217;s the classic bubble. And then it takes about 15 years to adjust.\n<\/p>\n<p>~ Ray Dalio, Bridgewater Associates<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>This time it&#8217;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&amp;P 500 respected resistance at 2000, the false break warning of a bull trap. A 21-day Twiggs Money Flow peak just above zero indicates (medium-term) selling &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2015\/09\/24\/beware-of-the-bear\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Beware of the Bear&#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":[64,251,507,947,1113,1481,1644,2478,2535,3010,3100,3503],"class_list":["post-13786","post","type-post","status-publish","format-standard","hentry","category-market-insights","category-stock-markets","tag-vix","tag-asx-200","tag-bse-sensex","tag-dax","tag-dow-jones-industrial-average","tag-ftse-100","tag-hang-seng-index","tag-nikkei-225","tag-nyse-short-sales","tag-sp-500","tag-shanghai-composite-index","tag-tsx-60"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Beware of the Bear - the patient investor<\/title>\n<meta name=\"description\" content=\"This time it&#039;s not the Russian bear but stock market bears that we need to beware of. 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Rising 13-week Twiggs Money Flow indicates buying pressure. Recovery above the descending trendline is likely and would indicate the end of the correction. Breakout above 2080 would confirm another advance with a target of 2200*. Failure of support is unlikely, but would\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","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-01-22-spx.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-01-22-spx.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-01-22-spx.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":11049,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/10\/02\/sp-500-breaks-support-2\/","url_meta":{"origin":13786,"position":1},"title":"S&#038;P 500 breaks support","author":"ColinTwiggs","date":"October 2, 2014","format":false,"excerpt":"The S&P 500 broke through the lower border of the broadening wedge and the secondary trendline at 1965, indicating a correction. Expect support at 1900. Decline of 21-day Twiggs Money Flow below zero would strengthen the signal, while recovery above 25% (September high) would suggest that buyers are back in\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","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-10-02-spx.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-10-02-spx.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-10-02-spx.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":13728,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/07\/20\/sp-500-pregnant-pause-2\/","url_meta":{"origin":13786,"position":2},"title":"S&#038;P 500 pregnant pause","author":"ColinTwiggs","date":"July 20, 2014","format":false,"excerpt":"S&P 500 advance to 2000 likely. VIX continues to indicate a bull market. ASX 200 finds support. A Harami candlestick formation on the S&P 500 suggests continuation of the up-trend. Harami means 'pregnant' in Japanese. Expect a test of the psychological barrier at 2000. 21-Day Twiggs Money Flow recovery above\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","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-07-18-spx.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-07-18-spx.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-07-18-spx.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":13850,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/07\/12\/market-bullish-despite-europe-bank-worries-2\/","url_meta":{"origin":13786,"position":3},"title":"Market bullish despite Europe bank worries","author":"ColinTwiggs","date":"July 12, 2014","format":false,"excerpt":"S&P 500 advance to 2000 likely. Europe warns of correction. China further consolidation expected. ASX 200 hesitant. US market sentiment remains bullish, while Europe hesitates on Portuguese banking worries. As Shane Oliver observed: \"Could there be a correction? Yes. Is it start of new bear mkt? Unlikely. Bull mkts end\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","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-07-11-spx.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-07-11-spx.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-07-11-spx.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":10278,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/07\/11\/market-bullish-despite-europe-bank-worries\/","url_meta":{"origin":13786,"position":4},"title":"Market bullish despite Europe bank worries","author":"ColinTwiggs","date":"July 11, 2014","format":false,"excerpt":"S&P 500 advance to 2000 likely. Europe warns of correction. China further consolidation expected. ASX 200 hesitant. US market sentiment remains bullish, while Europe hesitates on Portuguese banking worries. As Shane Oliver observed: \"Could there be a correction? Yes. Is it start of new bear mkt? Unlikely. Bull mkts end\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"S&P 500","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-07-11-spx.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-07-11-spx.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-07-11-spx.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":10365,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/07\/18\/sp-500-pregnant-pause\/","url_meta":{"origin":13786,"position":5},"title":"S&#038;P 500 pregnant pause","author":"ColinTwiggs","date":"July 18, 2014","format":false,"excerpt":"S&P 500 advance to 2000 likely. VIX continues to indicate a bull market. ASX 200 finds support. A Harami candlestick formation on the S&P 500 suggests continuation of the up-trend. Harami means 'pregnant' in Japanese. Expect a test of the psychological barrier at 2000. 21-Day Twiggs Money Flow recovery above\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"S&P 500","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-07-18-spx.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-07-18-spx.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-07-18-spx.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/13786","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=13786"}],"version-history":[{"count":2,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/13786\/revisions"}],"predecessor-version":[{"id":51356,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/13786\/revisions\/51356"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=13786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=13786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=13786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}