The stock market just took another lurch to the downside as one of the best days of the year for the Dow (+275) was followed by the worst day of the year (-335) which represents over a fortnight of wild gyrations as the stocks bull market after its mid September high appears to have hit a brick wall that is literally grinding the strength out of market with panic inducing moves that have been encouraging the perma-bears to literally scream at the top of their lungs that this time, THIS TIME the bull market really is over!

Clearly the realisation is slowly dawning on the markets that the QE easy money IS coming to an end this month and that interest rates WILL soon start to rise and thus the stock market is evaluating and discounting all of the potential drivers of trend, many of which which on face value are not looking so good such as Europe once more teetering on the brink of recession and China experiencing an economic slowdown and then there is the growing economic impact of Ebola.

The above daily graph illustrates the jump in market volatility as large day rallys are followed by even larger moves down the following day which is resulting in the VIX FEAR index spiking ever higher.

The stock market is now at a critical stage, hovering in the twilight zone of between being in a bull market correction or the start of a bear market.

My next in-depth analysis due to be emailed this weekend will seek to answer the question Is the Stocks Bull Market Over? Ensure you are subscribed to my Always FREE newsletter to get this in your email in box.

By Nadeem Walayat

http://www.marketoracle.co.uk

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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