What goes up, must come down.

VIX made what appears to be a bullish engulfing pattern this week.  For the past five weeks it has been bouncing off the rising Short-term support, currently at 19.87.  However, it has not broken out above the prior high at 26.01.  A breakout would signal the resumption of the bear market in stocks.

(ZeroHedge)  While Gluskin Sheff’s David Rosenberg has noted the macro/fundamental similarities between today’s tumultuous markets and those of 1987…

“Rising bond yields. Full employment. Fed tightening. Trade frictions. Weak dollar. Rising twin deficits, spurred by tax reform. Sound familiar? It should. This was 1987. Start rebalancing.”
UBS’ veteran markets observer Art Cashin sees more ominous signals in the market’s price machinations.

SPX has declined to challenge Long-term support at 2591.73, closing above it.  This suggests another attempt at the trendline at 2675.00.

I am writing this email from a Franciscan Shrine in Wisconsin where I am giving talks on the Shroud of Turin through this weekend.  Unfortunately, the connection to the web is spotty and difficult to manage.  Please go to Members Only and login with the password “pineapple” for updates through the coming week at no charge.

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One Response to What goes up, must come down.

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