face down friday, page-153

Here's a SPI monthly chart back to inception in 1983.

XJO has already done more down pts than '87 but SPI needs 37 from Fridays low to equal.

MACD is still extreme and someday and somehow it is going to be below zero again and that will be some move.

Now the better aspect is that RSI is nearly down to 50 and '87 went to about 40. The RSI high last year was the highest since '87.

The Slow Stoch shows how the 90's bull was less extreme with a base of about 50 but this last bull was extreme like the 80's with a base above 70.

The current SS, and it isn't month end yet, is about the same as the end of Oct '87 when most of the damage had been done, although it wasn't the low.

It is around the 50 mark and can be a low as per the '90's.

In '87 it took 4 months more of slightly lower prices to bring the indicator to a great buy point.

So once again I feel staying down for a while is much more constructive for the long term than quickly recovering.

Recovering would give another year, maybe more for us, to major top out but getting that SS down to below 20 will be a great buying opportunity, one that happens about twice a decade on average, although somehow that MACD haunts me.