Thursday August 15 2013
Scan our headlines the last few days and you will find multiple warnings of an impending top. We have stated there would be three tops and three bear markets in this 18 year bear cycle. The third has apparently started.
The NYSE Summation Index made a lower high on the fifth wave high in the NYSE. THis is a huge non confirmation which was born out in today's trading. Teh third wave is always the most powerful. Note it peaked along with the high in the summation index in May. the fifth wave high coincided with a turn down in the summation index.
Blonds Crater
But bond prices dropped again! Investors did not scurry into the flight to safety. Why not, the answer is fear of default. Michigan is already sagging under Detroit's problems.
Silver
Silver finally completes a fourth wave. No it is not the start of the new bull in silver, there is more downside to come. The big waves are in blue, the smaller ive of three are in red.
More to follow tomorrow, but make no mistake, the third bear market of the 18 year cycle has begun.
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