Weekend July 29 2023
Market moves end amid extreme mood and the a/d line shows exactly that
The actual NYSE index is at bottom, it bottomed last Oct followed by the A/D line. If this is Wave 2 we should not reach the extreme of the top back in 20212 but it might!
We have already had SVB and Signature Bank collapse, now check out the article on page B 1 of the weekend WSJ. Country Garden dollar bonds are trading at 20-40 cents on the dollar for maturities 2024 and 2025. That is an expectation of default.
Check out the mortgage crisis in England. If widespread defaults occur the contagion will spread through the banking system.
advance Decline Volume goes literally vertical
This is how manias end, the FOMO causes all to jump in thinking this is a new bull market but everyone is already in, that is the problem, no one else is left to buy! Notice PMO has gone flat at bottom
Hedge is forming a saucer shaped bottom, the precursor to a reversal. Notice the fastest moving average 8 days is moving up
2 hour chart
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