5 ways to know if the bull is over

Before it keels over, a bull market typically leaves a few road signs. Here's what to keep an eye on - from Money Magazine.

Treasury yields
Treasury yields
Before a bear: Treasury yields often run up
Happened yet? Not really

Big market pullbacks tend to take place after jumps in the yield of the 10-year Treasury note. Bear markets in the mid-'70s, early and late '80s, early '90s and 2000 all followed significant rises in bond yields. For example, the yield on the 10-year surged from 7 percent in January 1987 to 10.2 percent just before the October crash.

What about now? The 10-year yield rose from about 4.5 percent in mid-March to 5.2 percent in June but dropped back to around 4.7 percent in mid August.

"If the yield on the 10-year went up to 6 percent," says Jeffrey Saut, chief investment strategist for Raymond James Financial, "that could change investor psychology" - and help send the bull packing.

The state of the dollar affects Treasury yields too. A weakening dollar makes foreign investors nervous about holding Treasuries; when they sell, Treasury prices fall and yields rise.

"That would hit stocks, just like in 1987," says Subodh Kumar, an independent market strategist. The dollar has sagged - from $1.29 to the euro at the beginning of the year to $1.34 to the euro in mid August. If it slips further, that's a warning sign, Kumar says.

Outlook Oil prices Treasury yields Number of rising stocks Consumer spending Corporate earnings growth
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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.