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CNBC PRO Talks

Wall Street charting legend Yamada sees dying bull

Louise Yamada, one of the best technical analysts Wall Street has ever seen, believes the seven-year bull market remains vulnerable.

Similar to previous market tops in 2007 and during the dot-com bubble in 2000, a sideways trading market paired with fading momentum does not bode well for stocks, the founder of Louise Yamada Technical Research Advisors explains in an exclusive video for CNBC PRO. She started the independent research company in October 2005 after a 25-year career as the top chart analyst at Citigroup,

Back in May 2015, for example, Yamada alerted clients to a long-term momentum sell signal, which has not reversed, something that concerns her as the market continues to experience temporary rallies, she said.

"That leaves us a little suspect as to how this is going to pan out," she added, noting that the downside risk potential is greater than 20 percent, or a bear market.

In this in-depth interview with CNBC's Mike Santoli, the legendary technician discusses her investment outlook and showcases her technical skills on a number of charts. Other topics include:

  • Why every investor must use technical analysis, and how to use it to your advantage.
  • A detailed outlook on sectors like financials, consumer discretionary, telecom and utilities, among others.
  • Why a bear market could be on the horizon, along with the clues that could forewarn investors.
  • The one mistake investors seem to always make.
  • Her outlook on dividend stocks and other safety plays.