On October 17 I wrote a post titled “Danger Signs In The Stock Market, Financial System And Economy.” This is a brief third update to that post.
My overall analysis indicates a continuing elevated and growing level of danger. I have written numerous posts of some of what I consider both ongoing and recent “negative developments.” These developments, as well as other highly problematic conditions, have presented a highly perilous economic environment that threatens the overall financial system.
The downside of potential price depreciation among many asset classes is substantial, as many asset classes are currently "asset bubbles," a topic that I have extensively written about.
As far as the stock market is concerned, I don’t believe the October 4 low of 1,074.77 on the S&P500 will prove to be a lasting bottom, and the dynamics as described in the October 20 post ("Thoughts On The Next Stock Market Decline") and other disturbing long-term downside considerations still apply.
As reference, below is a 1-year daily chart of the S&P500, indicating both the 50 dma and 200 dma:
Click to enlarge.
Chart courtesy of StockCharts.com; chart creation and annotation by author.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.