Saturday, June 4, 2011

A Warning from the Depths of Hell

Remember ye the dark days of late 2007 when it first became apparent that the stock market's new highs were lying to us and that only the bond market was telling the truth?
An ice-cold hand from those long-buried days is reaching back from the grave and grabbing hold of the bond market now in much the same way.  The below chart I'm about to show you from the folks at Kimble Charting Solutions will give you the chills at a minimum...
What you're looking at below is high yield bonds breaking support while the long bond breaks resistance concurrently - this happened as a precursor to the equity market's crash and may be happening now for the first time since.
Click to Embiggen (if you dare):
Consider this a warning sign from the very depths of the hell that was the onset of the credit crisis.  Something to be aware of.

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