Detecting Bear Markets

  1. Deflation
  2. Historical High Price-Earnings Ratio
  3. Inverted Yield Curve
  4. Tightening Credit
  5. 10 Year Treasury to S&P Forward earnings yield
  6. Value Line Index falls 4 percent or more within a week
  7. Trading Index: (Number of Advancing Stocks/Number of Declining Stocks) / (Advancing Volume/Declining Volume) (TRIN >1.2 shows market is overbought)
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