Yes & No. That's because it depends on the timeframe. As an example, let's look at the technology sector.
We can see on the quarterly and the monthly timeframes that we are still in a bull cycle, while the weekly and daily timeframes are clearly trending down at the moment.
What does this mean?
What this means is that long term investors need not worry because the long term uptrend is still intact.
Our accounts go down but this is normal because of the down fluctuations that occur during a correction, such as the one we are in now. When we are a long term investor we want the long term trend to continue in the up direction. We can see on the quarterly and monthly timeframe that it is.
A quick way to determine if the trend is still intact is to look at the moving averages (the curved lines on the charts). If they are pointing up that means the uptrend is intact. If they look like they might be turning, then we want to be a little more cautious (but not worried). It's when the moving averages are clearly pointing down, and in particular, when the shorter term averages are crossing the longer term averages that a downtrend is beginning (as in the weekly chart) or established (as in the daily chart).
So eventhough we are in a bear cycle on the shorter time frames (daily and weekly), it doesn't mean the longer time frames will turn bearish. For now, the longer term time frames (monthly and quarterly) are still bullish.
It's all relative
Trends are different depending on the time frame. This is why when the news is doom and gloom there may not be cause to worry, because most news stories are looking at the day to day.
The relevant consideration is your style of investing:
P.S. By the way, the major indices are showing the same trends, i.e., the S&P 500, the DOW, the NASDAQ and the Small Caps.
About this blog
This is a blog about investing for beginners. You can count on quality information
Yvanne wrote a 2-part book series about investing for beginners. She is an investor with an entrepreneurial character and a creative spirit. In the context of her career, she was trained as an analyst, and later as a manager. Find out more here.