With today's biggest drop in stocks in over 4 months, we are reminded of three recent charts that raise considerable questions as to the path forward. From Mclellan's 1928 analog to Hussman's bubble trajectory [4] and the extremes of bullish sentiment [5], this week marks a 'line in the sand' for bulls to take this to the Hendry moon [6] or for it not to be different this time...
Mclellan's 1929 Analog...
[7]
Hussman's Bubble Trajectory...
Based on the fidelity of the recent advance to this price structure, we estimate the “finite-time singularity” of the present log-periodic bubble to occur (or to have occurred) somewhere between December 31, 2013 and January 13, 2014.
And the Market's Most Bullish Bias On Record...
[8]
Is it any wonder there are less BFTATH-ers left?
Charts: John Hussman, John Mclellan, and @Not_Jim_Cramer