Thursday December 6th may have been the final day in the life of the secular bull market.  Based on the S&P 500’s price and volume on the December 6th close and the December 7th open as depicted in the chart below it appears that the bull market which began in March 2009 has run out of gas.  For the week ended December 7th the Bull & Bear Tracker’s signals produced a return of 20.5%.  This compared to the S&P 500’s decline of 4.6% for the trade shortened week due to the market being closed on December 5th for President George Bush’s funeral.   See Bull & Bear Tracker’s signal performance statistics table below.     

From its 12/4/18 close of 2700.06, the S&P 500 declined by 2.9% to it low of 2621.53 on 12/6/18.  The index then embarked on a steady climb that resulted in its closing at 2695.95, on 12/6/18 which was 4.1 points below its open.  The inability for the S&P 500 to go the additional 4.1 points to close up for the day is a good indicator of the bull being exhausted.  The second sign was that the bullish volume at the end of the day on December 6th did not follow through after the S&P 500’s weak opening on December 7th.   Its clear from the price and volume action in the chart below that the secular bull market is either struggling or has perished.

From its 12/4/18 close of 2700.06, the S&P 500 declined by 2.9% to it low of 2621.53 on 12/6/18.  The index then embarked on a steady climb that resulted in its closing at 2695.95, on 12/6/18 which was 4.1 points below its open.  The inability for the S&P 500 to go the additional 4.1 points to close up for the day is a good indicator of the bull being exhausted.  The second sign was that the bullish volume at the end of the day on December 6th did not follow through after the S&P 500’s weak opening on December 7th.   Its clear from the price and volume action in the chart below that the secular bull market is either struggling or has perished.