Tdy looks as if it might stand in the history books as the day the Great
Bull Market in stocks was declared ended.

The decisive close in the NASDAQ 100 below the uptrend line from the May 24
low suggests that last week's highs are unlikely to be exceeded, possibly
not for a very long time and possibly for several years. Mkt action is very
close to completing a monthly Lindahl sell signal with the MACD declining.
The Lindahl sell signal, if/when completed on the monthly chart will put in
place a clear M with a pronounced lower high for most indexes, excepting
only the Value Line which went out to a record high on the rally. Certainly
there are still some strong stocks and some bullish surprises tdy as in the
magnificent action in Merck and Pfizer, as well as Boeing. Nevertheless, in
a general bear market 90 percent of all stocks decline and the surprises
come on the downside as they did tdy for the wonderstock Corning and for
Dell. Bear mkts dont spare prisoners. Most stocks get killed and the chances
of finding winners is no longer favorable unless you can find a specific
sector that is not affected by a severe economic downturn.

(We think oil stocks fit that category, with 100 percent gains in per share
income a certainty vs last year and extremely reasonable PE multiples.)

We have already many conspicuous examples of stocks that have been severely
knocked down, like MSFT and Deutsche Tel. Despite the immensity of the
declines in these stocks, theres nothing magical enough about these stocks
or any others to prevent further declines of the order of 50 to 75 percent
from current price levels. Look how some stocks have been killed in a bull
mkt, never mind a bear mkt.

Stockscom