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What The Charts Say: “Similar Topping Process To 2000 & 2007”
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
zerohedge.com / by Tyler Durden on 01/24/2016 – 14:20
The deterioration of the indicators highlighted below point to a downside break for the late-stage cyclical bull market from 2009, according to BofAML. Should 1,867 decisively give way, the 1820 (October 2014 low) provides additional support but the bigger risk is a top that projects down to 1,600-1,575; and derspite the last 2 days’ bounce, volume and breadth suggest a market under distribution or selling pressure, not primed for new highs.
Many indicators have rolled over in advance of price
- New year-long+ lows for S&P 500 on-balance-volume
- S&P 500 VIGOR is breaking the October 2015/October 2014 lows
- The US Most Active advance-decline line has completed a top. Similar tops precede/coincided with S&P 500 breakdowns in late 2007 and 2000.
- Weekly global index-level advance-decline lines continue to hit new lows
- A Dow Theory Sell Signal in late August. However, the Industrials are still above their August low in early 2016 (as of Jan 19) and not confirming downside in Transports yet.
- Monthly MACD sell signal with the S&P 500 back below its 12-month MA near 2042. -The first weekly MACD sell signal below zero since 2008 in early January
- A rise off extreme lows for net free credit (free credit balances in cash and margin accounts net of the debit balance in margin accounts) could exacerbate an equity market sell-off.
The post What The Charts Say: “Similar Topping Process To 2000 & 2007” appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/01/24/what-the-charts-say-similar-topping-process-to-2000-2007-2/
