10 yr chart As the market rallied into end of 2004 I had posted this many times. I thought it correlated well with 2000, and had mentioned it had gone to new highs of excess.
One thing to keep in mind, an indicator reaching new highs or lows in and of itself is not enough (as bears found out with LOW VIX) but it is when the indicator TURNS DIRECTION bottoms or tops out we SHOULD take notice.
That is exactly what the SPX/VIX ratio has done, and it is a ways from any kind of serious bottom.
The 52 week looks ready to begin a downtrend, the 2o wekk already has.
It certainly looks like the UPTREND in this relationship has topped. BAD for stocks.
FED PUMPED IN OVER $50 B last week reported! BEYOND CRISIS LEVELS of liquidity. NO kidding? this surrounds a move to 10K???
Or that this occurs BEFORE the next FED meeting on rates?
"we're done for now, no rate increase" a PANIC? what things aren't peachy keen?
"another blah blah 25 basis point rise, measured blah blah" STOCKS DO NOT DO WELL in rising interest rate environment, YET has it held off the housing industry.
Hey, here's your starter home or fixer upper....800 SQ FT $300K !
The market is SICK, it moves from news blurp to data release..leadership is sunk
D
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