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A Possible End to the Bull Market?


If anyone has been paying attention to how the market is doing, you will know that it has been in a bull market for quite some time. In fact, according to this article by Natasha Turak in CNBC, on Tuesday the market will have been in the longest bull run since WWII, and on August 22nd it will be on the longest bull run ever. This is a steep rise since the market’s bear run in 2009, which on the worst day bottomed out at 676. While a bull market can do great things for an economy, all bull runs must come to an end at some point. Turak’s article seems to imply that the end might be coming into sight.

Turak suggests that the markets will continue to rise in the next several months, but that these will be the last pushes of a bull market that will soon collapse. In her article, Turak cites Roelof-Jan van den Akker, who is the senior technical analyst for ING. In van de Akker’s mind, the market may continue to rise, but this will only be the last pushes of an upward formation that is bound to come down. He even holds that there could be a break over the 2,875 line, resulting from this final push of the bull market. He also holds that a break in the market above 2,875 could actually attract new buyers and would continue this final, upwards trend in the market.

While all bull market runs must come to a halt, there are some healthy signs still within the market, as Turak points out. According to Josh Brown, the CEO of Ritholtz Wealth Management, the RSI numbers of 59 to 60 on stocks could mean that there is potentially some upward movement left. He also views these numbers as much more healthy compared to numbers in January.

That being said, the fact still remains that a bull market simply cannot continue forever. This is the fact that looms over any upward trends that are appearing within the market now. Some like Jim Paulsen, Leuthold Group’s chief investment strategist who Turak cites, feel that with confidence majors high and low unemployment, among other statistics, that the market simply has no more room to grow upward. While it is clear that that no bull market run can last forever, only time will tell how much more push this run has before it collapses.