The Telltale Bear Market Signal for Stocks Is Back
On a year-to-year basis, the stock market is unpredictable, as investors were reminded firsthand in 2022. Following a nearly unstoppable move to new highs in 2021, the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S&P 500 (SNPINDEX: ^GSPC), and growth stock-fueled Nasdaq Composite (NASDAQINDEX: ^IXIC), all fell into respective bear markets last year and generated their worst returns since 2008.
Meanwhile, the start to 2023 has been just the opposite. As of the closing bell on Feb. 16, the S&P 500 and Nasdaq were higher by 6.5% and 13.3%, respectively. It has a lot of investors rightly questioning if the worst is behind us.
However, one telltale bear market indicator, which has a foolproof track record when backdated to 1870, would beg to differ with that assumption.
Source Fool.com
