The overdue Wile E. Coyote sell off is getting closer. It’s taken longer than expected to roll over because SPX / DOW etc daily, weekly AND monthly uptrends are simultaneously completing a protracted topping process. The resultant downtrend will have good momentum. Be careful folks: it will be nasty.
After further chart and indicator analysis I see that overextended DXY still requires retracement from current levels [before it commences substantial rally this year]
If sequester and/or EURUSD news is positive, equity shorts could be burned again with the covering resulting in yet more SPX meltup. [followed by the inevitable Wile E Coyote collapse]
In summary, global indices and DXY are both very overextended and seems the sequester outcome will determine the next short term move. So either overextended global indices will spike up further or overextended DXY will spike up further.
Longer term nothing has changed ~ SPX etc monthly charts continue to give bearish warning and DXY monthly chart continues to give bullish warning.
The 2013 onwards Wile E Coyote equity collapse will be brutal.
Wile E Coyote equity scenario still dominates & despite other variables, global index uptrends continue to look exhausted.Impending stock sell off gets closer.
Massive DXY [ie US dollar] selling pressure and SPX buy support returns.
Recurring market vacillation, fluctuating consensus and market direction reversals reflects the uncertainty and divergent views of market participants. Central bank intervention is a contributing factor as well…
SPX megaphone wedge shows inevitable 2013 Wile E Coyote crash.[monthly chart]
DOW monthly chart as of 20 June shows brutal Wile E Coyotemegaphone wedge.
How To Guarantee A Crash.
The Bernanke Put & USD suppression has dangerously distorted markets which will result in a massive Wile E Coyote collapse.
FED policy will cause a MASSIVE CRASH.