The 1987 stock market crash,was proceeded by an upside chart breakout
the effect of which was to hold the majority in place at then all time highs.
Then the crash came , and 22 % was lost in a single days trading.
Now flash forward 32 years to 2019.
You can see on this chart I've included,
that the S+P 500 has recently broken out above the Triangle Resistance to historic highs in the last month.
It has held above the breakout point, for 3 consecutive weeks now.
At the Same Time Market Bellwether Indicators Show :
1. Fear/Greed Index is at 87, showing rare "Extreme Greed " sentiment present in the market right now.
2 Put/Call Ratio's breaking down,showing rampant call buying,or very bullish option bets for immediate rising stock prices.
3 VIX handle is now just above 12, showing marked big money complacency.. in the market. That is not good.
All of the above shows real warning signs for the stock market.
The fact that bearish traders are throwing in the towel left and right,
shows massive market capitulation,at potentially the exact wrong time.
I"m not saying we're going to have a repeat of 1987.
But I am suggesting that acute downside risk is now in play,and it is much greater than the crowd expects.
Conclusion.
It seems only a matter of time,
before the stock market breaks,and breaks sharply to the downside to unknown levels below.
Lemmings only can grow to the sky for only so long...
SPX Last 3120.38
THE_UNWIND
11/17/19
MOUNTAINS/NEW YORK
.
the effect of which was to hold the majority in place at then all time highs.
Then the crash came , and 22 % was lost in a single days trading.
Now flash forward 32 years to 2019.
You can see on this chart I've included,
that the S+P 500 has recently broken out above the Triangle Resistance to historic highs in the last month.
It has held above the breakout point, for 3 consecutive weeks now.
At the Same Time Market Bellwether Indicators Show :
1. Fear/Greed Index is at 87, showing rare "Extreme Greed " sentiment present in the market right now.
2 Put/Call Ratio's breaking down,showing rampant call buying,or very bullish option bets for immediate rising stock prices.
3 VIX handle is now just above 12, showing marked big money complacency.. in the market. That is not good.
All of the above shows real warning signs for the stock market.
The fact that bearish traders are throwing in the towel left and right,
shows massive market capitulation,at potentially the exact wrong time.
I"m not saying we're going to have a repeat of 1987.
But I am suggesting that acute downside risk is now in play,and it is much greater than the crowd expects.
Conclusion.
It seems only a matter of time,
before the stock market breaks,and breaks sharply to the downside to unknown levels below.
Lemmings only can grow to the sky for only so long...
SPX Last 3120.38
THE_UNWIND
11/17/19
MOUNTAINS/NEW YORK
.