Buckle up! This ultimate bear chart signals a pivotal moment for investors

[ffr]

As if all the recent action in the reeling stock market, just on its bloodied face, isn’t troubling enough, there’s another reason to be worried.
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“The correlation is stunning to me from a technical perspective,” he writes. “Indeed, if Greenspan is right, this chart could have enormous implications for the next few years. This chart suggests a massive multiyear bear market could emerge.”

The ratio got hit last week, with stocks dropping and yields rising. For the trend to reverse, yields have to fall and stock rise. If it doesn’t happen, Henrich warns, the “massive multiyear head-and-shoulders” pattern could become even more alarming.

“Basically what this implies is that the entire rally since the early 2016 lows will turn out to have been a blow-off top,” he explained. “I’m not calling for an immediate collapse here, but I’m pointing to a possibly huge structural relationship between bonds and stocks, one that will likely take years to play out. But the signs of trouble are already in that chart.”

So, to avoid this scenario, he says that yields need to drop soon “or this market party may come to an abrupt end with deep reaching consequences.” - MarketWatch

The DOW is down 300 points, marking a second week of stock selloff.

[flamingdem]

1. Probably just a correction

We're not in a recession, the bear usually comes out of hibernation in a recession.

[doc03]

7. The bear usally comes out 6 months

before a recession.

[flamingdem]

8. Interesting

Will have to look at the history on that

[doc03]

10. That's what I have always heard the market prices in

the economic outlook about six months in the future..

[Wellstone ruled]

2. Tend to agree,

will have to see what the Fed does with rates tomorrow.

[lapfog_1]

3. repeal the tax cut

and yields will fall

[spinbaby]

4. It took W seven years to crash the economy

Looks like Dump will do it in about a year.

[RandomAccess]

5. He was a LOT more aggressive about it, near as I can tell.

[smirkymonkey]

9. He's the FASTEST ever!

The best!

[Joe941]

6. We need to chain this economy to tRump!

We should be on TV everyday telling people this is what the tRump economy brings.