Last week we reviewed some degrading indicators giving warnings on the US stock market in an update. The market went on to be okay. This weekend NFTRH 320 had caution signals aplenty, especially in the sentiment segment. And all along we have had the fading junk-quality bond spreads as a negative divergence.
Actually it was out much earlier but I had to get it in the can and run this morning. So now I am back and here to tell you that…
A snapshot of current technical status…
GLD made a bearish breakdown below the equiv. of gold 1180. To even think about repairing the technicals, GLD would have to get above 115 at a minimum (gold above 1180).
The following is an excerpt from NFTRH 298’s 38 pages of hard hitting, no b/s market analysis, which also included extensive work on the precious metals along with commodities, currencies, global markets and market sentiment.
NFTRH subscriber (7.6.14): “You should publish pages 15 and 16 of this weeks report. I would like to share it. It is a great summary of the current situation.” Pages 15 & 16 take it through the Dow chart below. I decided to go with the whole segment on US stocks.
Happy Independence Day America! Your markets are bullish… and over bought, over loved and running on increasing momentum.
The graph tells a story of the end of the Greenspan era’s commercial credit inflation, which was resolved in 2008, and the beginning of the Bernanke era and official credit inflation, which is ongoing.