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Stocks are on very thin ice.

The S&P 500 has just experienced a textbook “rejection” of its former bull market trendline. This occurs when the index breaks below its trendline, and then fails to reclaim this line during the subsequent bounce. This is a MAJOR warning as it indicates that price levels which previously served as “support” are now acting as “resistance.”

We get additional warnings that all is not well in the financial system from the USD. Despite the U.S. running deficits equal to 6% of GDP AND the Fed now easing monetary conditions, the USD is refusing to breakdown. Put simply, despite horrid fundamentals, the USD is in fact rallying. This is a major signal that a “flight to safety” trade is underway and that things are NOT OK in the financial system.

Put simply, something “bad” is brewing in the financial system. I’ll detail what I believe is happening in tomorrow’s article. In the meantime, if you’re worried about stocks, you NEED to use my proprietary Crash indicator: tietary indicator that has triggered before every major meltdown in the last 50 years. This signal caught the 1987 crash, the Tech Crash, the Great Financial Crisis and more.

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