The “monthly” chart below is of the Value Line Geometric Index (INDEXNYSEGIS: VALUG), which plots the price of an average stock in today’s market. We can see that a bearish wedge pattern has developed in a similar fashion to 2007 and 1999.
This chart looks at the NYSE index over the past 20-years. During this time frame, this broad index has spent the majority of the past quarter-century, inside of rising channel (1).
Joe Friday "Just The Facts Ma’am"- If the Russell breaks below support at (1), it could work its way over time to channel support at (2), currently around 20% below current prices.
In 2000 & 2007 the inverted yield created a bullish falling wedge, with the apex of the wedge at 25-year rising support. When a breakout took place in 2000 & 2007, stocks were peaking and they soon tanked.
Odds are high that the large decline in Crude, will impact all oil-producing states and especially Texas. A slowdown in Texas can have ripple effects on the overall economy.
Could interest rates be peaking after moving much higher over the past 5-years? Yes! Joe Friday shares that the yield on the 5-year note, looks like it created an important topping pattern last month.
It’s time to put the Emerging Markets (NYSEARCA: EEM) on your radar. Although the near-term trend is down, the broader price pattern is taking the shape of a bullish flag pattern.
A look at the Emerging Markets ETF (EEM)/S&P 500 ratio over the past 6-years. The decline in the ratio reflects EEM has been much weaker than the S&P 500 since 2012.
