The 10 year Treasury yield has dropped over 16% this week and over 8% today. It looks like a mad rush out of stocks and into bonds. Inflation is not a problem the market is concerned with at this time.
The SPX looks like it has started wave 5 down from the July 2007 high.
The 1×4 Gann angle of the 1982-2000 range is near 650 and is where I would expect this leg down to complete. The 50/50 point on this chart is in December or January so price could bounce off the 1×4 and back up to the 50/50 point - thus hitting both levels within a month or each other.
Charts courtesy of Stockcharts.com
Tags: Bonds · Inflation-Deflation · Standard and Poor's 500 (SP500)5 Comments
5 responses so far ↓
>The SPX looks like it has started wave 5 down from the July 2007 high.
nope, we just in 5 of 3
Serge, Thanks for answering my question before I asked it. Hey do you read minds
Just a few thoughts for the day:
Is this the “Greater Depression”? In 1929 they had a rally from early November into early 1930 before it went down again. This thing “market” is worse then a falling knife it seems now.
I am starting to see the pain on main street and maybe? Indeed scary if this is just the beggining of what’s to come.
My stops triggerged today for the few long positions I was holding. As if I have not learned from past burned my toes again. Too bad I do not own anymore QIDs.
Hey maybe as Libby had it 19 more sessions… or hand over your 401Ks.
Just remebering What Jesus said at Luke 21. It’s starting to feel like that. I am sure they felt the same way in 1929.
25 Also, there will be signs in sun and moon and stars, and on the earth anguish of nations, not knowing the way out because of the roaring of the sea and its agitation, 26 while men become faint out of fear and expectation of the things coming upon the inhabited earth; for the powers of the heavens will be shaken.
There you are Fork….nice to see you all back….I had a very nice support line drawn from sept slope thru oct highs and yesterday it landed perfectly on the support, looks like we have tw0(can’t type this morning) Two scenerios rolling in my head, Not sure if anyone will agree, but
1) we are still in the triangle of the 4th wave, and we might have just finished the B wave of the triangle or the D wave, why? futures are up big this morning, and E waves move fast and furious. we go back to 1020, now that would be awsome!
2) Ok, as I had stated a few days ago, we could have started wave 3 of wave 5, but now with futures up like they are, I just think it is funny to go down break the 02′ low and now we are rallying? into a 3 ???? hummmmmmm could this be wave “2″ of wave 5? Yes….it could, because I do not see a gap in the S&P from yesterday…and no gap in Dow…..??? Did we bottom? and did we just spike thru because of all the rumors from Citi bank having trouble again…believe me that move yesterday was not form GM/Ford/Chrysler….and Pelosi….it was from Citi bank and the ? of the year are they going to merge or get $$$ from Ben….Now who else is short on Cash??? if that big boy is you darn well know that the others are probably hurting, banks took a nose dive…OK let me know what you all think…I need to go count my pennies from yesterdays haul, some guy on Slopes board yesterday, Went all in and said he made 800K….think that would get you out of that boring job Andy???? LOL!
Yes. 800K would get me out of work for a few years. Remodel the house. Add a real fireplace to the cabin in the mountains. Sounds good. Boone’s buddies want to look for natural gas on my land so maybe I can make that in royalties…