Methinks that complacent longs stand a good chance of getting a 6% to 8% down move in the next few days to few weeks.
The Bond indicator is on the bottom.
The red lines indicate a "bottom" on the indicator, and most often a subsequent down move on the index (using SPX here)
The green lines are for tops on the Bond Indicator, which often immediately starts a up move on the SPX index. Check it out.
Additionally, I have found that multiple deeper bottoms form an "Egg Formation". And when the last dip into the egg is parabolic down, that often signals a large up move. The best dips down are a sharp stab into the egg. i.e. a blowoff bottom of sorts.
Drop a comment, how do you like this indicator?
