Read an interesting piece the other day on the always useful dshort.com which looked at whether a major correction in markets is due, the author uses two indicators to track the likelihood of this.
Firstly he looks at an indicator for predicting recessions as that is the first condition he thinks is required for a bear market. He seems to use a propriety indicator for this but I think watching the yield curve in government bonds can be also be a good warning sign, with an inversion being the trigger (short yields higher than long term rates). Neither of these show any cause for alarm on this front at the moment.
The second thing he looks at, which is more accessible, is the Bloomberg US Financial Conditions Index (BFCIUS:IND), I'll probably add this one to my watch list. You can read the whole article by clicking the link above, but you'll be pleased to know that he thinks neither indicator is flagging a bear market right now.
Meanwhile on I came across a good piece by Chris Kimble on the same site which looks at Eiffel Tower charts and how they appear during bubbles. This piece was about further upside in the US Corporate bond market or downside in yields on the basis of these charts. In this he also referenced a book that was recommend to him by the legendary John Templeton called Extraordinary Popular Delusions and the Madness of Crowds - By Charles Mackay and which also happens to be on my Reading List.
I hope you can see an article by Chris Kimble about the Eiffel Tower charts which he references in his piece in the file below. Enjoy and watch out all you Biotech investors out there!