7 Ominous Signals Coming From The Financial Markets That We Have Not Seen In Years

Posted by on October 15, 2014 in Economy with 2 Comments

Michael Snyder | Activist Post
economy financial marketIs the stock market about to crash?  Hopefully not, and there definitely have been quite a few “false alarms” over the past few years.  But without a doubt we have been living through one of the greatest financial bubbles in U.S. history, and the markets are absolutely primed for a full-blown crash. That doesn’t mean that one will happen now, but we are starting to see some ominous things happen in the financial world that we have not seen happen in a very long time.

So many of the same patterns that we witnessed just prior to the bursting of the dotcom bubble and just prior to the 2008 financial crisis are repeating themselves again. Hopefully we still have at least a little bit more time before stocks completely crash, because when this market does implode it is going to be a doozy.

The following are 9 ominous signals coming from the financial markets that we have not seen in years…

 #1 By the time the markets closed on Monday, we had witnessed the biggest three day decline for U.S. stocks since 2011 .

#2 On Monday, the S&P 500 moved below its 200-day moving average for the first time in about two years. The last time this happened after such an extended streak of success, the S&P 500 ended up declining by a total of  22 percent .

#3 This week the put-call ratio actually moved higher than it was at any point during the collapse of Lehman Brothers in 2008. This is an indication that there is a tremendous amount of fear on Wall Street right now.


#4 Everybody is watching the VIX at the moment. According to the Economic Policy Journal , the VIX has now risen to the highest level that it has been since the heart of the European debt crisis.  This is another indicator that there is extraordinary fear on Wall Street…

US stock market volatility has jumped to the highest since the eurozone debt crisis, according to a closely watched index, the the CBOE Vix index of implied US share price volatility.

It jumped to 24.6 late on Monday and is up again this morning. On Thursday, it was as low as 15.

That’s a very strong move, but things have been much worse. At height of the recent financial crisis – the Vix index peaked at 80.1 in November 2008.

Could we get there again? Yeah.

#5 The price of oil is crashing . This also happened in 2008 just before the financial crisis erupted.  At this point, the price of oil is now the lowest that it has been in more than two years .

#6 As Chris Kimble has pointed out , the chart for the Dow has formed a “Doji Star topping pattern”.  We also saw this happen  in 2007 .  Could this be an indication that we are on the verge of another stock market crash similar to what happened in 2008?

#7 Canadian stocks are actually doing even worse than U.S. stocks. At this point, Canadian stocks have already dropped more than 10 percent from the peak of the market

Technical strategist Abigail Doolittle is holding tight to her prediction of market doom ahead, asserting that a recent move in Wall Street’s fear gauge is signaling the way.

Doolittle, founder of Peak Theories Research, has made headlines lately suggesting a market correction worse than anyone thinks is ahead. The long-term possibility, she has said, is a 60 percent collapse for the S&P 500.

In early August, Doolittle was warning both of a looming “super spike” in the CBOE Volatility Index as well as a “death cross” in the 10-year Treasury note. The former referenced a sharp move higher in the “VIX,” while the latter used Wall Street lingo for an event that already occurred in which the fixed income benchmark saw its 50-day moving average cross below its 200-day trend line.

Both, she said, served as indicators for trouble ahead.

So what do you think?

Are we about to witness a stock market crash and another major financial crisis?

Or is this just another “false alarm” that will soon fade?

Please feel free to share what you think by posting a comment below…

This article first appeared here at the Economic Collapse Blog.  Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.
Read more at https://www.activistpost.com/2014/10/9-ominous-signals-coming-from-financial.html#I2rvizqbEBBmdmlx.99

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  1. cmcgoozowitz@gmail.com' Crackwhore McGoozowitz says:

    The title of this article is “9 Ominous signals bla bla bla” but there are only 7 given in said article. This article did not deliver and the author should be drug out into the street and shot. Nothing but fear mongering from Michael Snyder who isn’t even a god damned economist. If you’re so worried about our markets why don’t you make a cardboard sign and go hold it up outside a huge building in New York, because you know that gets results more than anything.

  2. itsonlyrocknroll69@yahoo.com' DeathtoZeon says:

    As always, we must ask ourselves . . . does a strong correction, or even a crash, benefit the long-term interests of Big Money? Does it help create/perpetuate a Permanent Underemployment Equilibrium in the US? Will it create another excuse for more Austerity and wage depression to bring US labor cost closer to the Global Mean? Will it stifle consideration of higher taxes for corporations and the Overclass?

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