No recovery in sight.  Pay cuts set the stage for sustained decline.

The markets however, appear to have their own agenda.  Like Clara Peller from the old Wendy’s commercial; Where’s the crash?

If we use 1929 as the model, then we’re either in one of two places.

The ’29 market had a sharp drop in May of that year before it went on to September all-time highs.

We could be there … with new all-time highs ahead.

Or, behind door number two; after the initial leg down in September – October of ‘29, the market recovered until late March of 1930, before rolling over.

Market behavior now, mimics the latter scenario.

The bond market continues its reversal.  Real estate’s a lagging market, having pushed higher and negating its previous reversal potential; at least for now.

Biotech seems to be in a world all its own.  The reversal identified here, continues.  Instead of an immediate move lower, we’ve got a topping process.

The 30-minute chart at this link shows attempts to move higher that are not (for now) successful.

If a new daily low is posted in today’s session (below 126.63), we may consider the topping process complete.