by Pebblewriter, Pebblewriter.com
My favorite bearish charts…borrowed from February’s Spindrift Capital Partners, LP monthly update. Enjoy!
We start with the well-formed megaphone pattern on DJIA…
…and, its doppelganger on the S&P 500 from the 70′s.
SPX (the thin purple line) raced ahead of DJIA at the top in 2000…
…and, again over the past few months.
The USDJPY has tagged the channel top that spelled stock declines of 22%, 35% and 57%. Again, the S&P500 is shown as the thin, purple line.
The two prior tags on the EURUSD’s channel from 2008-2014 signaled declines of 47% and 21%. We just tagged it a third time.
And, three previous tags on the 10-YR bond’s major trend line since 2007 have touched off plunges of 52%, 15% and 20%. The minor TL between Feb 2011 and Sep 2012 signaled two additional corrections of 9.9% and 8.9%.
The latest breadth thrust pattern on the monthly SPX chart shows a startling resemblance to those from the 2000 and 2007 tops.
And, last, my favorite bearish chart. What would happen if 1973 were to replay? Hint, the white dot is only half the damage.