equities, with technology shares falling out of favor … in a reversal from the previous week's biggest inflow in more than two years. The risk-off sentiment on Wall Street fueled the third-worst weekly outflow on record from U.S. It's interesting to note, too, how extreme net fund flows in and out of US stocks have swung from the August melt-up to September's downfall: Another set of market internals, showing serious market deterioration, can be found here: " Market Internals Point Towards Further Selling." I recommend this article on Seeking Alpha: " Danger: Bears Are All Around." The thrust is that many smaller indices and measures already show bear markets. Looking at the market based on drop in median price, however, cuts out the nonsense at the extremes to see how corporate stocks are really doing.įor an array of pictures showing how broader markets and indices are doing, I'm going to let others (one of whom is usually bullish) point out how the market is breaking down in the manner I indicated it would. ![]() The overall market has already crashed into a bear market with the median stock price now back down more than 20%:īear markets are not technically determined, of course by how far the market's median price has dropped but by the drop in the total value of major indices. September's downturn was, just as anticipated, more bouncy with daily ups and downs than March's plunge as the battle between the bulls and the bears plays out on a more protracted scale this time. Toward the end of next week, we'll step into October for a likely October surprise sometime in the month. Here you can see the weeks in blue and the overall downtrend of lower closing highs in red: Just taking a moment to note September just finished its fourth consecutive week down (final full week), maintaining a downtrend that began as we rolled over from August into September, setting up an October surprise. Since I've spent a fair amount of time on the US stock market of late, I won't say much.
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