S&P Rising Wedge Nearing An End
I have been quiet for a couple months now. I’m sorry I haven’t been consistent in posting Daily Readings, or any other material for that matter. Life has been a bit hectic, and the market has been fairly uninteresting as it seems stuck in an unsustainable liquidity-driven zombie-like march higher. There are enough warning signs that I can’t bring myself to jump on this runaway train, but there aren’t any indications that a breakdown is imminent yet either. And so I wait. And watch. At some point I will make a very large short bet. Here is the 20 year weekly chart. The last four years are a steep rising wedge that ends this summer. Moneyflow has been steadily declining over the last 3 years, creating a bearish divergence. The S&P is approaching the old high’s from 2000 and 2008. The coming weeks and months should be interesting.