Bad bad BAD news for the bulls.
The single most important chart for the stock market is the NYSE’s breadth. This ALWAYS and I do mean ALWAYS leads the broader market.
When breadth outperforms the S&P 500 to the upside, stocks catch up by rallying. And when the breadth underperforms the S&P 500, stocks tend to collapse.
Put simply, if you want to know what stocks will do, you NEED to look at breadth
With that in mind, breadth has broken a bearish rising wedge formation.
This is BAD news for stocks. And it is telling us that we could easily see a BIG drop…. Not because the US is in trouble necessarily, but because China is in REALLY BIG trouble.
At the end of the day, the US economy might hold up, but there is no way China can implode without hurting US stocks in a significant way. Copper and China’s stock market tell us that reality is much lower than most expect.
On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.
In it, we outline the coming collapse will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.
Today is the last day this report will be available to the general public.
To pick up one of the last remaining copies…
Chief Market Strategist
Phoenix Capital Research