Why September May Be Key for the Long-Term Outlook on Stocks

Jon Gold, Market Commentary, Precious Metals, Technical Analysis

We just spoke with technician Erin Heim of Stockscharts.com on our podcast to get her outlook on US stocks, gold, oil, and the US dollar. Erin outlined why she is currently neutral to bearish on most of the broad US stock market indices but then went on to say something that many may find unthinkable: ‘It’s not out of the question that we are beginning a new bull market.’
This is a bit hard to believe when we consider the Everything Bubble chart or even the fact that earnings and stock prices have clearly started to diverge for over a year now.
However, when we examine the technical picture of the market via the long-term MACD (Moving Average Convergence/Divergence) oscillator – one of the most popular indicators used in technical analysis – it is very close to forming a long-term bullish crossover (or ‘buy signal’ as technicians will sometimes say) on the S&P 500 similar to what we saw in 2003 and 2009.

This post was published at FinancialSense on 09/01/2016.