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The Bear Case for US Stocks

JC Parets, CMT

In today's post, I want to share that exercise as I perform it, outlining some current concerns and what the market would potentially look like in an environment where stocks as in the U.S. as an asset class are falling. We're going to stick with our top-down approach and start with international equities and inter-market relationships, then drill down into specific examples that help illustrate what we're talking about. In early July, we spoke about the slight deterioration in  Global Equity Market breadth, but we pointed out that shifts from uptrends to sideways in many of these markets were not inherently bearish. What we didn't want, and still don't want, to see is a resolution of those sideways consolidations to the downside rather than the upside.