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Stocks Are In BIG BEAR Trouble

January 8, 2016

Stocks are rallying into the open. However, the technical damage of the last week has been severe.

The S&P500 crashed through its trendline (blue line). It also crashed through critical support established by the bounces in September and October (green line).

We might get a bounce here to retest that green line, but unless a major Central Bank launches a new monetary program stocks are heading DOWN.

Indeed, in the BIG Picture it looks more and more like the bull market for stocks is over. The last hope for the bulls is that we hold critical support on the monthly S&P500 (the green line). Otherwise it’s GAME OVER.

Smart investors are preparing now.

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Graham Summers

Chief Market Strategist

Phoenix Capital Research

Graham Summers is Chief Market Strategist for Phoenix Capital Research, an independent investment research firm based in the Washington DC-metro area with clients in 56 countries around the world.

Graham’s clients include over 20,000 retail investors as well as strategists at some of the largest financial institutions in the world (Morgan Stanley, Merrill Lynch, Royal Bank of Scotland, UBS, and Raymond James to name a few). His views on business and investing has been featured in RollingStone magazine, The New York Post, CNN Money, Crain’s New York Business, the National Review, Thomson Reuters, the Glenn Beck Show and more.