Let's Check in on the Toyota Flag

Toyota, much like many stocks and indices around the world, has an all too familiar flag formation off the March lows. Toyota's is very clean in structure, with two distinct "humps" inside of it. I very much expect this to break down.

In the first crash, it broke a long-term trend line (red) that dates back about eight years. That will be easily broken again soon.

Beneath that (below) it has an even longer-term trend line support (blue) going back to the 1980s. If the markets totally fall apart, I expect we can eventually find support at those levels.

Comment:

Let me add one super long-term chart. It actually fits a rising broadening formation. Interesting! These often resolve with a halfway final failure (which we see right now) to reach to top again, before eventually falling out the bottom.

Totally unjustified and completely rampant speculation: if we are now facing a terrible depression, perhaps we are seeing Toyota's future bankruptcy foreshadowed now.