I'm doing an all equities and bonds edition today as there are some interesting things I'd like to look at. I'll start with the standard charts so on the SPX daily chart. SPX tried to break up from the middle bollinger band yesterday but returned to close there again. Of the three instances in the last year where SPX broke below the middle bollinger band and then recovered over it, the last setup that looks a lot like this was in June, and that resolved upwards. A small sample though:
Now I'm not saying we are going to see a 50% retracement on AAPL, but it has always been very expensive to ignore this warning in the past, including during the last two equity bubbles, and in the worst case I have main channel support slightly under 400. Just sayin':
Business Insider's Chart of the Day. Earnings are likely to be disappointing and so most of any rise in equity valuations will most likely have to some from rising P/E ratios, already at historically high levels. Again that's not necessarily a cause for immediate concern but it is something to bear in mind. Click on the chart below to see the full writeup from COTD:
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