Tuesday, August 5, 2014

The S&P Takes a Familiar Fall

Derivative of our impression that certain asset relationships - namely, commodities and bonds relative to equities, have been completing retests of both their long-term cycle lows from earlier in the year and their secular cycle lows from 1999, the current retracement decline in the S&P 500 is replicating structure and performance along very similar folds to the correction witnessed this past January - after the initial cycle lows were completed.