TradingView
thx1000
Dec 25, 2018 7:31 PM

Reset of 9 years of FED pumping ? Short

NYSE Composite IndexTVC

Description

While everyone was paying attention to the SPX NDX and DJI, the NYA was showing the early divergence. Following a parallel pattern, the 13th month would be FEB 2019, which corresponds to NOV 2008. Almost every indicator I follow confirms a 3rd wave down. A 5 week average of the advance/decline line which I have been doing by hand for decades is even below the 2008-09 low. The all time bullish sentiment by Investors Intelligence had been a little over 5 at the beginning of 1987, with a secondary peak of about 3.5 in August. The reading for JAN 2018 eclipsed the 1987 peak by a small percentage. The secondary reading in SEP 2018 was about 3.2. The smart money last hour index has been going straight down since JAN. The 8 month double top was obviously a huge distribution pattern. Usually, nothing ever repeats in the same manner, but I would sell all violent rallies. After 9 years of zero percent interest rates and corporations using that free money to highly leverage their companies, this reset should be quite ugly.
More