A breakdown of support in the Australian Dollar/U.S. Dollar ratio has led to three declines of 8%, 18% and 7% in the past 12 months!

Shared the chart below with Premium members on 3/14 and on the blog March 29th, within 1% of the 2012 highs.

The Power of the Pattern was suggesting that ….at least another 7%decline should be in the cards due to the chart below and it was time to protect your assets (see post here)  

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In the past year this indicator was three for threenow it is four for four and investors that didn’t harvest values have seen an 8% decline in the value of their S&P 500 holdings, reflected in the chart below.

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This currency ratio has sent quality messages of when to reduce risk exposure over the last year

Investors still long the S&P 500 need to hope that support holds at (2) in the above chart….because it it doesn’t this indicator is suggesting the 500 index should decline closer to the August/September decline numbers!   

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