Today’s chart comes from Callum Thomas, Head of Research at Topdowncharts.com, who says that this is probably one of the most important indicators to watch if you are trying to predict a bear market.
Simply put, it shows whether banks are tightening or loosening standards on large and medium firms and, as you can see, “a deterioration in lending standards has historically been a key warning sign for the S&P 500,” Callum notes in his recent Weekly Macro Themes report.
This post was published at FinancialSense on 08/11/2017.
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