Are Stock Markets Setting Up For A New ‘Black Monday’?
by Secular Investor
ZeroHedge.com
08/23/2015
A >20% correction would bring us to 1.580 points on the S&P 500, the previous break-out level! Coincidence? We don’t think so…
One thing is clear: the central bank driven QE program had a one-to-one correlation with the stock market. With a supposed ‘recovery of the economy’ it will be interesting to see how deep this correction will go, and how the monetary masters of the central banks will handle the correction. Is QE4 around the corner? Are we about to experience a Japan-style monetary stimulus leading the debt to GDP ratio to stratospheric levels? The chart suggests caution. Note that the MACD indicator fired a sell signal shortly after the ‘QE infinity’ program was ended. That was clearly a reliable early warning sign.
The Rest…HERE
