At Friday's close, June 24th, 2016, a rare monthly chart sell signal was triggered in my computer trading system. While this key signal will not become official until the close of trading on June 30th, unless we get a significant rally this coming week, the inevitable conclusion must be that the 7-year bull market in U.S. stock prices is over and that a major bear market is now underway.
If a new bear market has in fact begun, then the Brexit vote last Thursday will clearly be seen as the "black swan" catalyst, but there's plenty of bear meat to go around right now.
Traders and investors looking for a reasonable downside target in the S&P 500 Index can now look to the October 2007 high at 1,576. This translates into a 22% correction from Friday's close at 2,037 and a 25% correction from this month's recent high at 2,120.
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| S&P 500 Index Monthly Chart with Computer-generated Buy & Sell Signals |
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