XJO - Bear Posts only (Factors which might cause the markets to fall), page-6029

If you call yourselves investors with long term thinking and positions, then you make decisions based upon long term trends. As such you should be gauging the market based upon monthly charts. Here is what the monthly charts are showing.

Massive divergences on RSI (last time this long term divergence occurred was prior to 2008. The 2008 led to an actual bottom.

We had a divergence from 2018 to 2021 top. Same signal at the end of 2021 as the top in 2008. RSI is no where near the bottom and MACD has never been this high, it is also wide at present with values coming down. The MACD highlights the effect of the stimulus on the markets; this is shown by the difference between the short and long periods. Never in the rising markets over the period shown, has the MACD has as wide a difference as in the last 2 years.

The two previous times the RSI broke to the lower side was in the 1970s. I think we have discussed this period of time enough to consider what occurred during that period.

The conditions are worse from a FA perspective yet the charts are right (daily) lol.