As you trade stock on the market, you need to know when the market is taking a downward turn — becoming a bear market. The signs in the following list indicate a bear market is approaching, so adjust your trading strategy accordingly:
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Bear markets typically begin before the economy starts to decline.
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Interest rates are rising.
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Industrial production is starting to fall.
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Basic material stocks, energy stocks, and consumer staples are performing well.
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The weekly chart of the S&P 500 shows lower highs and lower lows; the MACD (moving average convergence divergence) line is below the trigger line and falling.
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The bullish percent index indicator shows a bear alert or a bear confirmation pattern.
