Kimble Charting Solutions: Nine-Year Bull Market In Jeopardy

Three Key Indexes Testing Long-Term Up-Trend

March 6, 2020 Bob Weir Kimble Charts

eResearch | Today’s article from Chris Kimble looks at the possibility of the nine-year bull market coming to an end. This possibility has been exacerbated by the sharp decline in the market indexes a week ago. Although a good recovery was staged at the beginning of the current week, the indexes now look like they are going to go back and test their recent lows.

Last week, the S&P 500 dropped about 12%.

Chart 1: S&P 500 Chart (2-Week ) 15-Minute Intervals

2020-03-06 Kimble-S & P 500
Source: BigCharts.com

The DJIA fell an equal 12%.

Chart 2: DJIA Chart (2-Week ) 15-Minute Intervals

2020-03-06 Kimble-DJIA
Source: BigCharts.com

These are the fastest +10% declines in their respective histories.

However, did these declines break below their long-term rising channels? Check out the chart triage below. From left to right, these charts are for the Banks Index (BKX), JPMorgan (JPM), and the S&P 500 Index (SPX).

2020-03-06 Kimble-3 Chart Image
Source: Kimble Charting Solutions

Each of these indexes has spent most of the past nine years within their respective rising channels, creating higher lows and higher highs.

The Bank Index closed below its lower channel line in February.

JPM and the S&P 500 both remain within their respective channels, but are testing support at each (1). For now, their respective long-term bull-trend still exists.

Kimble concludes as follows: If the S&P and JPM close on a monthly basis below 9-year rising channels at each (1), the 9-year bull market/trend looks to be in jeopardy.

To read Chris Kimble’s article, click here: Bull Market In Jeopardy
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About Bob Weir 329 Articles
Bob Weir has over 50 years of investment research and analytical experience in both the equity and fixed-income sectors, and in the commercial real estate industry. He joined eResearch in 2004 and was its President, CEO, and Managing Director, Research Services until December 2018. Prior to joining eResearch, Bob was at Dominion Bond Rating Service (DBRS).

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