$SPX touching the top of a massive 20 year channel. Note the recent divergence on the RSI(14). What are the chances it will pop above the channel and keep going? All those earnings are in the rear view mirror now.
Monthly chart from the early 80s of SPX. From Nov/Dec of 1980 to Jul 1982 SPX went from approximately 141 to 103 over a year and a half period. A 27% loss overall. Here is a headline from Jan 81 - "Economy Shows Surprising Strength". There are many examples of this in the past. Use Google's news search tool and search dates just before the market had severe...
Here is a 25 year price chart of SP500 with the NYSE composite in purple as a comparison. At each peak there is a significant percentage divergence in prices between the two. Additionally after a subsequent decline in prices the two indices converge in price showing a collapse of the divergence. In the current cycle the SP500 is ahead of the NYSE by approx 24%....
$DJT is down 22% from its peak and is coming into long term support - 200 week MA and the top of a previous rally at about 9000. Also the RSI has shown support at these levels in past corrections as shown. The speed and severity of the correction while the economy is still in good shape, though cooling off a little, suggests a nice bounce is coming.
Pretty good correlation between the price of oil and gold probably because they are both mainly tied to the dollar. Examine the last five years or so on the weekly scale and gold seems to lead moves in oil by about six months. Wait for a confirmed breakout in gold (break above a downtrend or resistance) to start building a position.
