Are we in a stealth bear market

https://www.investing.com/analysis/...d-highs-a-stealth-bear-market-roars-200578336

 

Is that like a slow moving crash?

 

Interesting article especially re divergences

 

When it really comes, "experts" will come out from the closet and say "I predicted it".

 

Seems like a lot of the stocks that are going down have had so much growth and that looking at longer time horizons makes sense. Zoom, Twilio, etc. have had huge growth already so I assume the 2nd derivative of growth will be negative for a long time.

Up until a few weeks ago the vaccine stocks skyrocketed like 75-100% (MRNA, BNTX, NVAX). Even right now the Drug stocks are still going up almost every day (JNJ, PFE, MRK, LLY, etc.). Pfizer went from the $43 breakout to almost $53 in 2-3 weeks.

I do agree that the recent market rally is larger based on Consumer Staples, Utilities and Healthcare (XLP, XLU & XLV). Seems like a bear market right now is just sector rotation and not much actual selling. Even on heavy selling days the defensive sectors almost always come back at the end of the day.

 

Two observations:
1) The last chart on your web link is of Market averages vs SPX price, its not a chart of Market averages versus SPX averages, so it can be misconstrued the ways it's presented.
An indexes Price can rise while its index averages fall.
2) If you look carefully, the greater the drawdowns, the greater the bounces.

Here is Market general, SPX, NAS, DJIA, 50 day.
The Mkt general (green line) underperforms the others, probably because of the influence of small caps.

 

Here is SPX price versus its 50 day averages.

 

Here is just the SPX 50 day averages seen as a bar chart rather than line chart.

 

My vocab incorrect, should be; 'Total Market.'
I was waking up early morning so brain still a bit foggy when I wrote that.

 

%%
NOT much;
even though by end of day or tuesday, we may see a start of a little bear/LOL