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?
Looks good Steveo. How's it going?
ReplyDeleteJust moving in to my new "bug in" house. Haven't traded in a month, hoping that refreshes my mojo.
ReplyDeleteOne way or another the next few months should be interesting. Still could go either way IMO.
ReplyDeleteSure, I try to do less of being one sided in my thinking.
ReplyDeleteLooks promising Steveo but in order to have a 1929 style crash we need a blow off top... which to me means 1800-1900 by mid October just in time for Legatus
ReplyDeleteInteresting pattern Steveo.
ReplyDeleteI noticed that TLT and LQD have bounced off some important Fib levels from the last 2 years.
Something big is up.
Precious metals set to outperform??
Eh Red, I am just thinking a 6 to 8% correction, not sure when the big one will come.
ReplyDeleteI'll do the Fear Factor and VOS shortly, could have clues, although I think PM will outperform the indices for the next 5 to 10 years. PS recheck the chart, I added a better one.
ReplyDeleteI updated the chart, new one is better.
ReplyDelete