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.

MSCI'S ALL-COUNTRY WORLD INDEX EXTENDS DROP TO 20% FROM RECORD

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

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







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