The extreme flux continues in stocks, with traders flip-flopping on sentiment faster than a short-order cook flips hamburgers. Yet if we look at both domestic and international equity benchmarks, we realize that the overwhelming sentiment here is bearish.

Take a look at the charts here of the S&P 500 Index, and the iShares MSCI EAFE Index (EFA). Both the broad measure of domestic equities (SPX) and the broad measure of international equities (EFA) clearly show how much selling there’s been since the beginning of May.

I suspect that the longer stocks remain below their respective 200-day moving averages, the greater the odds are for a true change of sentiment that’s strongly in favor of the bears. If, however, we can get a substantial bounce in stocks here, it might mitigate the chances of a full-blown descent into bear status.

If you’d like more on how to read this market, including my take on various market charts like the ones shown here, then I invite you to take a look at my most recent online presentation that I call, “The Market Outlook After the Fabian Plan Sell Signal.”

Click on the link here to watch this FREE eight-minute video presentation.

NOTE: Fabian Wealth Strategies is a SEC registered investment adviser, and is not affiliated with Eagle Publishing.