The stock market clock is indeed inching its way closer and closer to midnight. In the video below I briefly review the S&P 500 daily and weekly charts as well as the VIX weekly chart.
I then dive into the long-term monthly chart of the Dow Jones Industrial Average (DJIA) and talk about how my Elliott Wave count syncs with Professor Shiller’s CAPE ratio. The stock market clock is indeed close to striking midnight on the entire bull market.
I show on the chart where we are now in terms of the CAPE ratio and the only other two times in U.S. stock market history when that has occurred. So what happens when the stock market clock hits midnight?
The bull market is over and a major reversal to the mean will occur. But this will not just be the end of the bull market from March 2009. Or the huge bull market from August 1982.
So in the video I provide a visual to help put in perspective where we are in history. I believe we are going to be in for a wild ride over the next several years.