Chart that makes you go 'hmmmm'

"hmmm where's the logarithmic scale feature"

 

Pop quiz time: What's the most conspicuously odd thing about the recent downtrend?

 

No surges in volume?

 

This graph is pointless.

 

That everyone on ET sold the top, flipped short, and prints money on a daiy basis?

 

You win a ceeegar.

 

Low volume. It really stands out on the monthly chart. Looks like the smart money cashed out last January:



Of course, the traditional interpretation of a low-volume decline is bullish as it signifies a market correction. Another interpretation, more likely given the negative fundamentals, is it is bearish because the market will continue to fall until there's a huge high-volume day where everyone pukes up their shares in a panic. Next support lines are 11,000 and 10,700. A fall down to those levels would drive the monthly RSI down to the 2002 lows.

 

Outstanding!

We have not seen capitulation selling.

To be honest, I do not know what this portends.

Marc Faber was quoted today saying he believes a massive commodity correction is in the works and that he see's the USD firming.

If that commodities' correction occurs sooner rather than later, we may be spared.

 

Fed raising interest rates a couple of times would proabably achieve all that. May not be that great for equities in the short term though.