Friday, October 17, 2014

9 Ominous Signals Coming From The Financial Markets That We Have Not Seen In Years

"The following are 9 ominous signals coming from the financial markets that we have not seen in years...
#1 By the time the markets closed on Monday, we had witnessed the biggest three day decline for U.S. stocks since 2011.
#2 On Monday, the S&P 500 moved below its 200 day moving average for the first time in about two years.  The last time this happened after such an extended streak of success, the S&P 500 ended up declining by a total of 22 percent.
#3 This week the put-call ratio actually moved higher than it was at any point during the collapse of Lehman Brothers in 2008.  This is an indication that there is a tremendous amount of fear on Wall Street right now.
#4 Everybody is watching the VIX at the moment.  According to the Economic Policy Journal, the VIX has now risen to the highest level that it has been since the heart of the European debt crisis.  This is another indicator that there is extraordinary fear on Wall Street...
US stock market volatility has jumped to the highest since the eurozone debt crisis, according to a closely watched index, the the CBOE Vix index of implied US share price volatility.
It jumped to 24.6 late on Monday and is up again this morning. On Thursday, it was as low as 15.
That's a very strong move, but things have been much worse. At height of the recent financial crisis – the Vix index peaked at 80.1 in November 2008.
Could we get there again? Yeah.
#5 The price of oil is crashing.  This also happened in 2008 just before the financial crisis erupted.  At this point, the price of oil is now the lowest that it has been in more than two years.
#6 As Chris Kimble has pointed out, the chart for the Dow has formed a "Doji Star topping pattern".  We also saw this happen in 2007.  Could this be an indication that we are on the verge of another stock market crash similar to what happened in 2008?..."
at http://theeconomiccollapseblog.com/archives/9-ominous-signals-coming-from-the-financial-markets-that-we-have-not-seen-in-years

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