WARNING SIGN: Massive Sell-Off Strikes Leading U.S. Stock Market Industry

While market advances are always led by a handful of sectors, today’s extreme concentration of leading sectors and industry groups hasn’t been seen since the dot-com bubble era.

Now, over the last few trading sessions, there has been significant structural damage to the existing long-term uptrend in U.S. stocks.

According to Bloomberg:

Why is this a big deal?

Because until this recent sell-off, stocks in the media industry led the bull market. This small group of 15 stocks has gained more than 500% since their 2009 lows, making them the top performing industry of the entire bull market.

The takeaway: The leader of the entire U.S. bull market has just collapsed.

While the long-term uptrend in U.S. stocks remains intact, it is certainly weakening. When leading sectors and industries start to fail, it is similar to failing engines on a high-flying plane. It usually ends badly.

When the leaders in any market begin to fail, it’s wise to tighten up your stops and tread with caution.

Be advised.

Until Monday,
Jerry Robinson