is it forming an ugly head and shoulders, page-68

Surprised if the bear market has ended.

Chart showing unemployment with SPX. Steepest parts of UE line up at or after market bottoms except for two cases since 1950.

Big exception is 2002, then minor case in 1983 when interest rates went through the roof which kept markets in check.

Otherwise, market has rallied hard after each of those bottoms.

However, SPX could still be coming down from its overextension, being beyond the long term trend line of ~5.9% for many years. The bottom trend line is at around high 400s in 2010. Chance it will meet, which might also link well with the Dow/Gold ratio completing its downcycle.