Risks of equity bear market

Technical breadth indicators are suggesting an increased risk of a cyclical bear market in equities, according to Chris Watling at Longview Economics.  The percentage of stocks above their 200-day MA and market breadth have been declining for over a year: The Colvin Model of global breadth in asset prices has turned negative and is approaching its lowest level since 2012. The percentage of stocks below their 200-day MA is also at a 4-year low. Moreover, the single stock measure of breadth remains weak and typically declines ahead of a bear market.

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