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Seth Golden posted an update 3 years, 6 months ago
Market timer Tom McClellan, publisher of the “McClellan Market Report,” turned bearish on the stock market for short and intermediate-term trading styles, after nearly three weeks as a bull, as the break of key support suggests the start of a “corrective period” into June. “The robust rally off of last week’s low gave some hope that the bullish case might win out,” McClellan wrote in a note delivered to clients late Tuesday. “And it still might, but so many indications are pointing south now that it is time to believe them.” He turned bearish because the S&P 500 closed Tuesday below it’s “10% Trend” support level, which came in at 4,152.50. McClellan noted that he became concerned when the S&P 500 dipped below the 10% Trend last week, but with the index climbing back above it, then failing to stay above it on a second break attempt “says that the bulls are out of gas.” He believes the corrective period will last into June, followed by an “exciting rally” once the bottom is in. The S&P 500 was down 1.1% in midday trading Wednesday.