Chart of the Day: Be Prepared.

As I’ve mentioned in previous posts, I’m not a trader.  I follow long term trends and want to own low cost ETFs until I see a breakdown.  We saw things begin to breakdown at end of last year and confirmed in January this year with international bonds, then in April and May with international stocks, emerging markets and commodities.  (see: This too shall pass, May 6)

Now we are seeing significant pressure on US stocks according to the trend we follow.  I never want to prognosticate, but the story the charts are telling me is not a happy one.

The S&P 500 has now put in the classic 10% correction that bullish analysts often view as buy signal. But every bear market drops below 10%. The behavior of high-yield funds suggests a continued posture of preparation.

Click to enlarge.

Source: Dshort.com

Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.

iheartWallStreet.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com and affiliated sites.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.