The next week or two could be an important test for the markets.
Why? Because the same pattern could be developing that preceded the May drop.
Here is the comparison:
The chart below shows the above conditions. Note: the C-RSI is a daily 30-Relative Strength reading minus 50 so that it has a zero-base for ease of reading.
*** Observe the similarities between the end of April, compared to yesterday on the New York Stock Exchange as seen below. There is no guarantee that the pattern will repeat, but the current indicator movements do suggest that keeping a watchful eye on the pattern would be a very good idea.
