The Big Bear is back. Ursa Majoris in the house of the rising sun, and Taurus is in the house of the setting sun. Those are bad signs for investors who are now daily diving into their horoscopes. The market is pouring out of an inverted Big Dipper, otherwise known as the Big Bear (Ursa Major), and no one (not even the Fed chair) nor any positive event seems able to stop it. I can easily tell you why.
But first, even Goldman Sachs now says that the stock market’s twin peaks this summer were actually a strong indicator back then that the market was crashing into a full-blown bear market, not just a correction, making my prediction that the big change would come in early summer pretty darn close to right even if the tailing action waited until fall. Entering a brutal bearish mood, Goldman has joined numerous others in saying the present market troubles in the US look worse than many people realize:
Two months ago we reported that according to Goldman’s bear market indicator, the risk of a market crash dead ahead was higher than before the dot com bubble burst in 2000 and ahead of the 2008 global financial crisis, or as Goldman puts it, “our Bull/Bear market indicator is flashing red.” (Zero Hedge)
Read the rest here: The Great Recession