• 658 days Will The ECB Continue To Hike Rates?
  • 659 days Forbes: Aramco Remains Largest Company In The Middle East
  • 660 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,060 days Could Crypto Overtake Traditional Investment?
  • 1,065 days Americans Still Quitting Jobs At Record Pace
  • 1,067 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,070 days Is The Dollar Too Strong?
  • 1,070 days Big Tech Disappoints Investors on Earnings Calls
  • 1,071 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,073 days China Is Quietly Trying To Distance Itself From Russia
  • 1,073 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,077 days Crypto Investors Won Big In 2021
  • 1,077 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,078 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,080 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,081 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,084 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,085 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,085 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,087 days Are NFTs About To Take Over Gaming?
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

  1. Home
  2. Markets
  3. Other

The State of the Trend

Looking at the monthly chart of the '94 - 2000, '02 - '07 and current rally, it becomes apparent that they follow a similar rate of ascent. From '98 to '00 there was an acceleration of that ascent, which lead to the peak in March 2000. Currently, the index finds itself in a very similar position, after advancing at the same angle and by the exact same percentage amount since the '09 trend began accelerating at the end of '11:

SPX Monthly Chart
Larger Image

There's another similarity. Looking at the daily chart, the SPX just completed a retracement commensurate with the one from May - June '13:

SPX Daily Chart
Larger Image

Whether this will mark the end of the '09 rally or just a pause in it will become evident fairly soon, depending on the ability of the SPX to climb above resistance at 1815 and 1850, or to break below the lower daily channel line.

The VIX system we mentioned last week switched to a buy signal at the open on Thursday, and after signaling the start of a 90+ point decline in January, is now trailing a 40+ point advance:

GSPC/VIX Chart
Chart courtesy of OddsTrader

Gold and silver continue to consolidate just above their recent lows but still remain trapped below strong resistance levels and within long-term downsloping channels:

SPDR Gold Trust Shares Monthly Chart
Larger Image

iShares Silver Trust Monthly Chart
Larger Image

 

Back to homepage

Leave a comment

Leave a comment