• 722 days Will The ECB Continue To Hike Rates?
  • 723 days Forbes: Aramco Remains Largest Company In The Middle East
  • 724 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,124 days Could Crypto Overtake Traditional Investment?
  • 1,129 days Americans Still Quitting Jobs At Record Pace
  • 1,131 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,134 days Is The Dollar Too Strong?
  • 1,134 days Big Tech Disappoints Investors on Earnings Calls
  • 1,135 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,137 days China Is Quietly Trying To Distance Itself From Russia
  • 1,137 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,141 days Crypto Investors Won Big In 2021
  • 1,141 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,142 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,144 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,145 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,148 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,149 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,149 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,151 days Are NFTs About To Take Over Gaming?
Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

  1. Home
  2. Markets
  3. Other

2008 All Over Again?

When I was looking at some long term charts, I found out that the current situation for the SP500 is very similar to the situation in 2008.

Check out the following chart below, and you will see why...

- The RSI hasn't been overbought anymore in a long time, indicating weakness in stock markets... The same was true in 2008.

- The SP500 found heavy resistance in the 1260-1280 zone (just as we warned our subscribers), which was the low of June 2011. A similar thing happened back in May 2008, where price ran into resistance of the November 2007 low.

- Look at the exponential moving averages (20, 50, 100 and 200 EMA's). They have now been converging as price rallied, but right now, price is falling below these EMA's, just like in late May 2008.

- The MACD is now flirting to break the green support line, just like in May 2008, right before financial armageddon occured, and price is right at the green support line now, just like in 2008.


Chart courtesy stockcharts.com

If we are about to see the exact move as in 2008, this is what it would look like...


Chart courtesy stockcharts.com

The Ted Spread, which is the difference between the interest rates on interbank loans and on short-term U.S. government debt or "T-bills", is rising. This indicates that the banks don't trust each other anymore. The same thing happened in 2008.


Chart: Bloomberg

One positive thing however, is that when we look at the big picture, we are nowhere near the 2008 highs (yet)...


Chart: Bloomberg

 


In our weekend reports and nightly updates, we will describe the implications for the different asset classes (USD, Gold, Silver, Stocks, Bonds,...). Would you like to know more? Feel free to subscribe to our services.

 

Back to homepage

Leave a comment

Leave a comment