The Most Important Chart To Consider For The Weekend (Or Tom Lee's Nightmare)

Tyler Durden's picture

Sometimes, it just pays to keep it simple stupid. At some point, the dismal economic reality of our post-credit-creation-miracle boom world will reassert itself in asset prices. The catalyst may not be obvious (like a close-election reminding a nation of sheep just how divided we are as a people and implicitly as a political class - and what that means for our future fiscal probity); but it is coming. 'Cycles' cycle; the Fed has fired its bazooka; and OMT omnipotence is in doubt;and the only way we get 'moar money' from our central planners is if their hand is forced by a reversion to reality...



US economic data may be surprising to the upside (of economist's expectations - weighted by what is clearly now the most bullshit pre-election datasets we have seen) but as we have said before - there is no decoupling, it is lagging and leading behavior (combined with the normal pre-election upward bias of hopium in sentiment). The chart above makes it clear that while some have seen positive moves by US-specific macro data surprises, the rest of the core international economies are doing decidedly badly - and US equities remain ignorant (for now).


(h/t @Not_Jim_Cramer)

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putbuyer's picture

Nonsense. Without charts all is blind. I have never been wrong. Listen to the trees...

Pareto's picture

oh yeah they do.  check out the SLV, as an example.  perfect fibonocci retracement.  a thing of beauty actually.

Tom.the.Bomb's picture

because I love ZH

 The best conversation in human history !


Pareto's picture

+1 for the seriously needed gut chuckle.

Dr. Sandi's picture


the Fed has fired its bazooka

So is that the official 'Money Shot?'

(Technically, it would actually be a currency shot, I guess.)

ebworthen's picture

What's reality again?

I have a dim memory of it; though it sometimes surfaces when I buy food and gas.

lynnybee's picture

i'm ready, too !   i have nothing in the market, i listened to my grandma years ago.   i have nothing in banks.   everything i own is held outside of the banking system, like FELIX ZULAUF said to do.    but, i want to see this market go bidless & get it over with just to be vindicated .    i'm the laughing stock of my friends & family, been screaming for 4 years to get out, get out , get out cause this thing is going to DOW 4,000 ..... i'm still a laughing stock.   

hustler etiquette's picture

the charlie indigo alpha can just redirect the loot from cocaine sales into the market too

Money Squid's picture

Pump the market like to cheap ho until the election is over then bet it colapses then let it collapse.

What the surprise?

Grand Supercycle's picture


SP500 head & shoulders formation on daily chart continues.
SP500 weekly chart also shows likely head & shoulders.
DOW monthly chart shows bearish rising wedge.

The current bearish price action comprises the first installment of the very overdue Wile E. Coyote sell off.
As mentioned, the previous SPX meltup - devoid of healthy retracements - has caused the coming crash.

One can only stretch the bungee cord so far before it reacts...

q99x2's picture

Snapdragons: my favorite flower.

geewhiz190's picture

what is the chart's source?

DowTheorist's picture

The stock market is right now in a very difficult juncture. While still in a primary bull market (notwithstanding the current secondary reaction), there is inminent risk that a primary bear market signal is flashed.


Here you have the details and how to spot the bear market in a timely manner:



ZFiNX's picture

The amplitude of the red line increases with each oscillation, it will easily catch up in tandem with S & P 500 on the next rally; which appears imminent. I see no problem here.