JoeCole's Blog : Bear Alert

According to my interpretation of the NY Stock Exchange Bullish Percent index, the stock market experienced a Bull Market that lasted from March of this year until June 17th. With the move from below the 30% line coast-to-coast to reaching 74% before reversing into 'bear alert' status yesterday, the market experienced a classic bull market which may be considered to be within a larger bear market, or as a hint of the ultimate bottom. The last time a reversal from these levels occurred was July 2007.

Moves this broad often take five or more years with small corrections in between, and it's rare for the index to move from coast to coast without reversing at least one time. All that aside, the reversal from above 70% is a harbinger for risk and trading should be approached with caution.