Three Charts Are Warning a Market Collapse Is Just Around the Corner

Jon Economy, Market Commentary, Politics

The markets are speaking, but no one is listening.
The single driver of the stock market since election night is the hype of a Trump-policy driven economic boom. The economy is booming, but based on expectations NOT actual policy changes.
This is a critical distinction.
Stocks are MOST susceptible to violent drops (or even Crashes) when illusions are shattered. The illusion of major changes to the US economy is about to be shattered.
The markets are already telegraphing this.
The single most important stock market index for assessing ‘risk on’ vs. ‘risk off’ is the Russell 2000. What the Russell 2000 does… the rest of the market soon follows.
On that note, the Russell 2000 has just staged a final blow off push to the upside. And. It. Failed. The momentum here has shifted and we could drop to that red box (a 5% drop) in a matter of days.

This post was published at GoldSeek on 1 May 2017.