Below is another great chart that Doug Short  shared two months ago. (see original post here)

The bottom line in the chart below…when margin debt was extremely high and the bottom support line of the rising wedge broke…. the S&P 500 fell over 50%…. two seperate times, since 2000! 

This time is it going to be different?


As you can see in the chart above…. for the third time this decade, margin debt is extremely high and another rising wedge had formed

The 500 index at the time the above chart was produced , was setting on the rising wedge support lineNot any more!!!



Multi-year rising wedges forming at the time margin debt was hitting record levels was not a good sign back in 2000 and 2007, especially once the bottom support line of the wedge was taken out!  Going to be any different this time around since debt is high and the wedge support is broken?

Will the “great debt unwind” take place for the third time since 2000?  This setup suggested risk was high 60 days ago and the story remains the same today!

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past