As the funds continue to pile into safety, the parabolic,
blow-off move in XLP is resembling the wave 2 retracement of the
2008 bear market. What is also interesting: $SPX retraced to
about this level in 2008 before the plunge. In this version
of the bull market, more money is piled into XLP. This
combined with $SOX negative divergence is a pretty good indicator
that the next move for the $SPX is down. I'm on my laptop
with a small screen, but wish I could post three charts lined up
($SOX, XLP, $SPX) showing similarity to 2008 wave 2 top before the
big plunge.
Flight to safety.... XLP topping?
Posted by kalinm on 30th of Dec 2011 at 02:27 pm
As the funds continue to pile into safety, the parabolic, blow-off move in XLP is resembling the wave 2 retracement of the 2008 bear market. What is also interesting: $SPX retraced to about this level in 2008 before the plunge. In this version of the bull market, more money is piled into XLP. This combined with $SOX negative divergence is a pretty good indicator that the next move for the $SPX is down. I'm on my laptop with a small screen, but wish I could post three charts lined up ($SOX, XLP, $SPX) showing similarity to 2008 wave 2 top before the big plunge.
very interesting chart, thanks!
Posted by morton13 on 30th of Dec 2011 at 02:38 pm