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"Severe Correction Or Cyclical Bear" Ahead: Leuthold Major Trend Index Turns Negative
Courtesy of The Leuthold Group,
Based on data for the week ended August 7th, the Major Trend Index dropped to a NEGATIVE reading of 0.90, led by declines in both the Attitudinal and Momentum/Breadth/Divergence work. The topping action evident in the MTI and other disciplines is consistent with either a severe correction, or a cyclical bear in the near future. We’ve therefore cut net equity exposure in both the Leuthold Core and Leuthold Global Funds to 38%, down from 48% in late July, and 61-62% in late June. A further reduction is possible in the days ahead.
Sentiment has clearly cooled off from the ebullience seen throughout 2014 and early this year, and some analysts contend there’s a new “wall of worry” for the stock market to climb (concerns over China’s market air pocket, crude’s retest of March lows, and the weak quarterly earnings season now in progress). But the MTI’s Attitudinal category staged a sharp drop last week, reflecting bearish flips in three models tracking investor preferences between stocks and bonds.
The Momentum/Breadth/Divergence category also recorded a small loss on the week, reflecting further weakness in market breadth and small losses in the chart scores. Yet the net reading for this category is still positive at +92; the weakness to date has largely been concentrated in “anticipatory” indicator groupings related to momentum, breadth, and industry leadership. We obviously prefer acting on this type of evidence rather than waiting for formal bear signals from indicators based on the major indexes, but the markets don’t always afford us that opportunity.
The Supply/Demand category carries the smallest potential weight of the five categories but can be an important swing factor at major turning points. The current category reading is a bearish –93, reflecting evidence of increasing institutional selling across three measures.
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That's what happens when a select few greedy banksters hijack the financial institutions of a country. Everything gets corrupted to satisfy their greed and ambition.
https://biblicisminstitute.wordpress.com/2015/07/28/how-the-ashkenazi-je...
All this correction is imminent bs is based on pre-2009 thinking. The FED went down the rabbit hole and can't get out.
The tick held around -1157. The PPT worked hard today but long term technical indicators still scream: "FUCKED"
Watch AAPL rally then fail at 117-119 and the SOX get socked on Friday after a thin faux rally tomorrow.
Gold's head fake will be short lived but when it does start to surge, it will look just like 2008-2010 but at much higher levels.
Wait until the FED delays "liftoff" and watch the stock market. Then we can wait until the FED releases a new QE or what ever they want to call it then.
What I'd like to see is somebody apply all this charting to Weimar's stock market or Zimbabwe's and predict the correction that never came. Before 2009 it made a lot more sense, but we can't time travel and not do what the FED did. If they go ahead and raise rates, I might have to change my mind, not that it will matter after that train wreck.
Here's a wild what-if. Before cocktails too.
What if China bought our market today after the drop knowing the FED would now have to delay "liftoff"? The FED is too "invested" in the stock market at this point to let the last six years go up in a puff of smoke.
If the fucking FED does not own every share yet they will soon.
Which is the whole point of the debt fiat game.
Long term thinking.
we owe the debt and the criminal bankers own the assets! Thank you FED!
there is no market
It's a muppet abbitoir.
#41
Send in The clowns
better yet send in MOOR CLOWNS
Does any of this baloney stick?
Googled "Cyclical bear" but was disappointed not to find an image. williambanzai7 or someone?
I don't know. I found them ALL over the intertubes.
https://images.duckduckgo.com/iu/?u=http%3A%2F%2Ftse2.mm.bing.net%2Fth%3...
ot they could just print more criminal trillions for themselves!
What does the Skynet Index say?
I met Steve Leuthold years ago. Many people never heard of him, but he is very well respected and I love his indicators. I really suggest people pay attention to his funds and indicators.
Ahh, yes, of course the Leuthold index. Ahh, hmm.