The Coming Crash

2015年2月18日

The stars are aligning for a pretty serious pullback in the US Equities Market.

The chart uses my two favorite indicators; RSI and MACD.

I've gone through and marked historical correlations on the chart for prior crashes for both indicators.

RSI going above 70; signals overvalued
RSI going below 30; signals underbought

MACD Converging (Red)
MACD Diverging (Green)

You'll see both of these correlate quite nicely with the two previous crashes.

**Projections**

I project a between a 30-40 percent pull back spanning nearly two years.

I've added a possible short position with a fairly tight tolerance for a good ratio.

I'll keep the chart updated in case we're looking at a false-top; given present valuations and P/E ratios I don't think we are.