We have been writing about the anatomy of secular bear markets for the past 10 years. They are a much different beast than a secular bull as shown in the chart below. The Italian stock market is retesting the same level as its 2002 and 2009 bottoms, with Spain following close behind. Will this bottom hold for a third time? or does this secular bear push to a fresh cycle low? The next few months will tell. This also bodes poorly for other global stock markets (like North America) which are highly correlated (with some time lags) to other global stocks, and are still some 40-50% above their prior cycle lows. Decoupling anyone?
Source: Cory Venable, CMT, Venable Park Investment Counsel Inc.