The big bear market decline for stocks that Tom McClellan, publisher of the McClellan Market Report, has been expecting got started on Tuesday, he said, as he turned bearish for short- and intermediate-term trading styles. He has been bearish for long-term trading styles since Feb. 28. After the Dow Jones Industrial Average's 425-point tumble on Tuesday, McClellan said although there could be a minor pause to the downtrend through Friday, "this looks like the beginning of the big bear market" that he believes could last for several months. McClellan, who doesn't believe trends are defined by arbitrary percentage declines or gains from a peak or trough, said stocks are already in a bear market. He said there could be a minor rally toward a top on April 27, but then a "lasting and painful downtrend" should ensue toward a bottom due in August.
Read the full story: ‘Big bear market’ for stocks lasting several months appears to have begun