Quick update: topping pattern still in place

Stagnant prices? Check.
High sentiment? Check.
Declining RSI? Check.

Sell that market!

SPX 1 year

vix 1 year

naaim

New highs can’t be ruled out, but starting from conditions like this, they will be small in relation to the likely decline.

Throw in a developing recession and high Shiller PE ratio, and you’ve got the strong possibility of a major top.

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PS – If you’re in the US, and you are the voting type (I am not), please consider the Libertarian Party and Gary Johnson.

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1 Response

  1. Mike says:

    Ha! I posted this early this AM when futures were basically sideways, then went fishing offshore, to return just before the close and see the market down smartly. Sooner or later, one of these little declines will not be recovered and we will continue down. Maybe this is it.

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