Per yesterday's peek at the S&P 500 daily chart, the technicals paint a somewhat concerning picture about the go-forward prospects for US equities.
Continuing with that theme this morning, recall our recent coverage of the breadth readings for the Nasdaq Composite Index (which contains what have been the dominant market leaders since the 2008 crisis); i.e., the concerning advance/decline line showing that all boats within the index have definitely not been rising with the tide.
Here's an update (index top panel, a/d line bottom):
"...the more I look at the world and the need for massive capital expenditure for all sorts of things, the more I can see, yeah, absolutely, commercial bank balance sheets will be growing at double digit levels, so will money supply, and therefore inflation between four and six is perfectly normal and sustainable going forward.
And then the key question is, what on earth are they going to do about interest rates, because there is no way that interest rates can be allowed to reflect that level of inflation. ""How do they keep them down when inflation is high? That's what everybody needs to know if they're trying to preserve wealth in the type of world we're moving into."
Have a great day!