Identifying the Beginning of a Bear Market in Canada
Part of the Trading For Canadians For Dummies Cheat Sheet
As the stock market fluctuates, there are some key indicators that help Canadian traders spot a bear market. Learn how to recognize these first signs of an economic decline so you can strategize and be prepared.
Bear markets typically begin before the economy starts to decline.
Interest rates are rising.
Industrial production is starting to fall.
Basic material stocks, energy stocks, and consumer staples are performing well.
Weekly chart of S&P/TSX shows lower highs and lower lows; the MACD line is below the trigger line and falling.
Bullish percent index indicator shows bear alert or bear confirmation pattern.