They say no one rings a bell at a stock market top (before it crashes). Consider the Greedometer to be ringing the proverbial bell. Per previous comments, the SPX had to re-test 1850 within 1%. Done. The mini Greedometer took it a step further indicating the SPX would set a new secular peak last week, this week, or both. With the SPX setting a new all-time peak today, that’s done too.
So get ready, because here it comes. Based on the Greedometer and mini Greedometer data over the past three months, the S&P500 is about to go through a 65-70% crash. Likely ending in June 2015.
That is, unless the Fed and/or ECB manage to pull another rabbit out of a hat to stall it or stop it. I’m on the record indicating the Fed will likely not stop this collapse, and that it will tag-out, letting the ECB have a shot at it this summer.
Dr Draghi, you’re almost certainly going to have to begin QE this summer. No empty threats this time.