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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: russwinter who wrote (56663)3/23/2006 5:21:19 PM
From: Perspective  Read Replies (4) of 110194
 
I know this board is focused on fundamental analysis, but I think it's critical to keep an eye on the technical analysis of stock indices, particularly sectors. Presumably we're all interested in this in order to position investment capital for a decent return without too much risk. With that in mind, I've been trying to find some hint in stock prices that the next downturn is at hand, and precious little support can be made for that argument.

The only weakness I've found is in $HGX, $GNX, and a little of the tech sector:

stockcharts.com
stockcharts.com
stockcharts.com

A few glamour names are in a bit of trouble

stockcharts.com
stockcharts.com
stockcharts.com
stockcharts.com

but I see little or no evidence of a consumer-driven recession being sensed in $RLX:

stockcharts.com

In the old days, there used to be "leading sectors" that one could track for early warnings of recessions, something like this:

finance.yahoo.com

If there's a recession on the way, neither of these are showing it. Of course, the stock market seems to have transitioned from being a leading indicator to being more of a coincident indicator. Perhaps that's due to a greater wag-the-dog phenomenon.

Just curious if anyone has any better ideas for canaries in the coal mine.

What should we be watching as a leading indicator of developing downward momentum?

BC
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