In today's short video, we are going to take another look at the S&P 500. The action on Wednesday was extremely important. Where the market stopped was an indication of where we are headed in the future.
I think you'll enjoy this video as it is brief, to the point and educational.
You can watch this video with my compliments and there is no registration requirements. I would love to get your feedback about this video on our blog.
All the best,
i believe we are starting to see the start of major disinflation, could you look at CRB index to confirm. i use the yard sale index as my indicator. when you see an increase in yard sales in your immediate area, trouble ahead. When no one shows up to them anymore. That's big trouble!
I always enjoy your video's and I understand the concept of the trends but lets not overlook value of a commodity or stock.
Norm
Adam,
I was wondering if you could share some insight as to why gold has been moving roughly in the same direction as the major indexes (S&P500, etc) over the past few days. In conjunction with this video and your recent one on gold, I would expect the decline in the S&P to coincide with an increase in gold. But today again, S&P down and gold down, while recently on up days for the S&P gold was up too. What gives with that?
thanks,
Dan Martin
Dan,
Thank you for your feedback. Sometimes this happens, you have two markets that tend to move in the same direction even though their polar opposites in the real world. Eventually the two will split and you will see each of them trading on their own merits in my opinion.
As you may know the CFTC is investigating an abuse of position limits in the commodity markets and certainly gold has come under that cloud although it has been overshadowed in large part by the oil market.
Thanks for contributing, all the best.
Adam
To my way of thinking the stock market will move inversely to the U.S. dollar index, which looks like it is testing its recent June 3rd low. Should the U.S. dollar begin an ascent from here, I believe oil and gold will fall, as will the S&P500.
According to http://www.thepatternsite.com, a head-and-shoulders top is ranked very highly, with a break-even failure rate of only 4%. The average decline is 22%. Thus, if Adam is correct in his assessment of this formation for the S&P500, the odds are in favor of a drop, just as he points out in his video.