Related Topics
Stocks , Investing

Can You Spot the Bear Market Leaders?

“For the first time, all five stocks have posted double-digit declines in 2022.”

by Bob Stokes
Updated: December 01, 2022

Saying that stocks are in a bear market may seem presumptive to some investors -- after all, stocks are up strongly off their October lows. So, let's address that first for a minute.

Yes, the rally since mid-October is seen as a bullish sign by some observers. Here's a Nov. 25 headline from a major financial publication (Barron's):

Bye-Bye, Bear Market? The Worst Could Be Over for Stocks.

However, consider the fact that rallies -- and sometimes very sharp ones -- have always been a part of bear markets. Also, there has been a succession of lower lows and lower highs in the blue-chip indexes since the January top. That defines the trend as down.

Of course, no one can forecast future trends with absolute certainty, and it's possible that the stock market could launch into a new bull market.

Yet, at this juncture, let's turn our attention to the possible leaders of the downtrend -- technology stocks.

It's not unusual for the leaders on the way up to be the leaders on the way down, and the so-called FAANG stocks [Facebook (now Meta Platforms), Apple, Amazon, Netflix and Google (now Alphabet)] have been among the well-known leaders during the long bull market.

Indeed, our November Elliott Wave Financial Forecast, which published Nov. 4, showed this chart and said:


The Wall Street Journal reported on October 27 that the five FAANG stocks are "on track for their worst simultaneous losses ever, a far cry from their late-2021 highs. For the first time, all five stocks have posted double-digit declines in 2022." This "stunning downfall" is exactly what The Elliott Wave Financial Forecast anticipated in January.

Yes, the NYSE FANG+ index is trading somewhat higher here in late November versus nearly a month ago, but the broad story is the same.

Now is the time to get more insights into the developing stock market trend. Specifically, the anticipated extent of the downturn -- if indeed that's where stocks are headed. Elliott wave analysis is revealing and will help you to prepare.

Click on the link below to find out how you can access our forecasts.

Do You See Today's Trend for What It Is?

In his book Prechter's Perspective, EWI founder Robert Prechter had that question in mind when he said this:

The Wave Principle is... a description of the steps human beings go through when they are part of the investment crowd, to change their psychological orientation from bullish to bearish and vice versa. That description fits the movement of any market, as long as human beings are involved... Since this aspect of people doesn't change, the path they follow in moving from extreme pessimism to extreme optimism and back again is essentially the same over and over and over.

Our current Elliott wave analysis of U.S. stocks, bonds, gold, silver, the U.S. dollar (and more) reveals the likely junctures of each of these financial markets.

Hence, if you have a good idea about the current juncture along a repetitive price path, you have a good idea about what to anticipate next.

Follow the link below to get our Elliott wave insights about major U.S. financial markets now.

Financial Forecast Service


All month long, Financial Forecast Service helps you stay ahead of the waves in the U.S. markets on the timeframes that matter the most. FFS covers the stock indexes, bonds, gold, silver, the U.S. dollar, as well as market psychology and cultural trends. It is our most popular service.

Comprises the monthly Elliott Wave Financial Forecast, 3x-per-week Short Term Update and at least 12x-per-year Elliott Wave Theorist.


How to Fine-Tune Your Elliott Wave Forecast

When you combine Elliott waves with other technical analysis indicators, often it helps you clarify your forecast. Watch our Currency Pro Service editor, Michael Madden, combine the waves with classic technical tools like Head & Shoulders and RSI to forecast the next move in USD/CAD.

How Countertrend Rallies Can Slyly Lure in Investors

Is the stock market's main trend up or down? It's a basic question that Elliott wave analysis helps you answer -- and thus anticipate countertrend moves that fool others -- even those who are accomplished. For example, here's the brief story of a physician's portfolio.

How to Predict Commodity Trends? Put One (Elliott Wave) Foot in Front of the Other

In early 2020, the Covid-19 pandemic delivered a "shock like no other" to the global commodities sector. The bearish "fundamental" shoe seemed to fit like a glove. But instead, a 2-year long bull market occurred. Maybe it's time to slip into a new pair of market analysis.