Equity markets preparing for the next wave of selling.
There are a few signs that equity markets could be on the verge of a fresh move to the downside. Here are a few charts to explain.
1. Equity/Bond Ratio
The ratio between equities bonds has rallied into a significant resistance zone and is showing signs of rolling over, this suggests the bullish momentum...
The graph speaks for itself but you can see the 5-year moving average following the uptrend formed by the lows while the highs are kept in check by the resistance zone/lines. Depending on macroeconomic factors, a 15-20% decline is not unimaginable.
