Major world stock markets are all in a BEAR MARKET MODE…cash is king horizon to horizon…universally! Death Cross patterns continue to spread through most international stock markets like an epidemic gone viral (A Death Cross pattern is when the 10-week moving average falls below the 40-week moving average). Moreover, history is testament that September is marked by horrific stock losses during the past 40 years.

Hong Kong

Shanghai Stock Index (China)

NIKKEI (Japan Stock Index)

DAX (German Stock Index)

FTSE (London Stock Index)

CAC (French Stock Index)

AEX (Netherland Stock Index)

BSE (India Bombay Stock Exchange)

DOW Stock Index

S&P500 Stock Index

To be sure all should know the stock market is a leading indicator of its respective economy. Therefore, it appears unanimous that we are facing the threat of a global recession at best…and an economic Armageddon at worst.

Someone must pay the piper for the massive debt causing tidal waves of foreclosures worldwide…and the resulting banking debacle.
Several Bear Market Indicators Forecasting The Worst Is Yet To Come

The following 7 Technical Indicator chart patterns were precursors to 2007-2008 Bear Market. And recent readings mirror the same dangerous levels of the last US Bear Market when US stock indices lost more than 50%.

Furthermore, the above 7 Technical Indicators charts are all screaming “BEAR MARKET IN PROGRESS.”
September Sell-Off In Summary

The Mother Of All Bear Markets has just been born…as stocks are plummeting horizon to horizon. Frenzied investors are dumping stocks in panic…worldwide! Moreover, history is testament that September is marked by horrific stock losses during the past 40 years. History may not repeat exactly, but it may well rhyme as it has done so often in the past. The chart below shows the average monthly change in value of the S&P500 during the past 40 years. The yearly September Sell-Off is decidedly the worst month for equities.

(Chart courtesy of Squirrelers.com)

By I. M. Vronsky
Editor & Partner - Gold-Eagle
www.gold-eagle.com

Founder of GOLD-EAGLE in January 1997. Vronsky has over 40 years’ experience in the international investment world, having cut his financial teeth in Wall Street as a Financial Analyst with White Weld. He believes gold and silver will soon be recognized as legal tender in all 50 US states (Utah and Arizona having already passed laws to that effect). Vronsky speaks three languages with indifference: English, Spanish and Brazilian Portuguese. His education includes university degrees in Engineering, Liberal Arts and an MBA in International Business Administration – qualifying as Phi Beta Kappa for high scholastic achievement in all three.

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 losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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