Monday Feb 24, 2020
The market closed near the low of the day. Announcing the sell off before the markets openned today a friend commented that I had been talking top of the market for two years. Fair enough let's take a look.
This is the last two years of the SPX. It hit 2600 in Sept of 2018. It then took till July of 2019 to surpass this level. Finally
Since this past Sept the index finally tacked on another 11% to complete a parabolic high. This kind of formation is called a distribution top, those who bought way back when are alternately buying and selling to the late comers.
Transports
The Transport average is much more economically sensitive. It peaked in Sept of 2018 and never saw that high since.
The Transports are a typically early warning sigh that something is amiss. Note th Transport average dropped 2750 points in three months after that high.
Russell 20000 Small Cap via Rydex
For some reason stock charts is not finding the Russell 2000 so I used rydex, same thing, no new high since Sept 2018.
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