Another Warning Sign For Stocks [Direxion Daily Small Cap Bear 3X Shares, ProShares Short S&P500 (ETF)]

Italy is in recession, France’s economy is teetering on recession, and Germany’s economy is showing signs of softening.

Today, the European Central Bank dropped interest rates again—but those lower rates are not spurring bank lending or consumer demand.

China and Japan, the second- and third-biggest economic hubs in the global economy, are seeing their economies slow as well.

Key stock indices are completely ignoring the worldwide economic slowdown.

Dear reader, irrationality and manipulation can run longer than anticipated, but not forever.

The S&P 500 reaching 2,000 doesn’t really say or mean much except for this: the higher key stock indices go, the harder they will fall and the bigger the damage they will cause to consumer sentiment and the economy.

This article is brought to you courtesy of Michael Lombardi from Profit Confidential.

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