This Divergence is Worse Than That of the 2007 Top
By: Graham Summers
GoldSeek.com
Thursday, 12 March 2015
The markets staged a brief dead cat bounce yesterday. We are coming up on the critical 126-day moving average (DMA), which has acted as support for the S&P 500 multiple times since the beginning of 2014.
The one exception of course was the October sell-off, which took stocks to their 280-DMA. The reason for that collapse of course was that the global economy was weakening again.
As much as the Federal Reserve and other Central Banks try, they cannot end the business cycle. There are always going to be downturns. That is, by definition, the nature of business.
The fact that the US is now entering a downturn despite the Fed spending over $4 trillion… and running a QE PROGRAM NON-STOP FOR TWO YEARS, is the reason why stocks are highly susceptible to a collapse.
The Rest…HERE
