Thursday, January 21, 2016

S&P 500 Threatens Truly Bearish Longer-Term Shift.......

S&P 500 Threatens Truly Bearish Longer-Term Shift

The specific area rests at the August low of 1,867, and the S&P closed Wednesday at 1859, below this level.

The S&P 500 close was just below the big 1,862 "Ebola low" the market put in back in October 2014

The S&P close Wednesday at 1859, marked its worst close in over 19 months.

This area violated to the downside in Wednesdays trade — S&P 1,867 to 1,886 — matches the neckline of a massive head-and-shoulders top. On this violation, we have a projected longer-term target of 1,640 on the downside. Also consider that the S&P's 1,640 target on the weekly chart — projected from its head-and-shoulders top — isn't too distant from the multi-year breakout point, around 1,575. Remember it won't go down in a straight line.

The S&P 500's longer-term bias remains bearish pending a close higher. The January downdraft has raised a very serious red flag to a potentially meaningful longer-term trend shift.

The "Dead-Cat-Bubble" is dead as global stocks enter a bear market (down 20% from May 2015 highs) and US equities catch down to the rest of the world.


History repeats, if you're just willing to listen......

It would appear the business cycle trumps central planning after all:

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