The NYSE composite has created a series of lower highs for months and months and months. Believe the message of the S&P 500 or the NYSE? .
This index has been sending a message of a soft economy for a long time! The Power of the Pattern reflected on May the 15th that this key index hit falling resistance and was breaking support…the Power of the Pattern message at that time-Reduce risk asset exposure at key falling resistance, this is bearihs for the broad markets! (see post here)
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Joe Friday reflects today that another quailty message is coming from this key index as it is breaking below this multi-year flag pattern at (3) in the chart above. Not only is the NYSE breaking below multi-year flag patterns, so is the CRB and Crude Oil (See more flag breakdowns)
Of course, we don’t want to read too much into today’s horrible gap down and breakdown of various high-yield funds either…
maybe just a hiccup… maybe…