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