A Critical Line in the Financial Markets Will Likely Be Crossed in Early 2025
The chart included here (click on chart to expand) is not a chart intended to promote fear. In fact, the bull market party should continue for some time. It’s important to be long stocks right now. Here’s a chart for US Markets Net New Highs/New Lows to watch as well.
However, since 2004, when the blue line on this chart has been crossed, it has foreshadowed a coming multi-year decline or extended period of sideways action in the markets.
At the moment, the chart is giving us a “thumbs up” to continue picking stocks to be long (buy and hold), but it does appear our run to the upside in the markets may soon need a breather at the very least.
We’ll post an update of this chart in December 2024 to see where we’re at. Stay tuned.
Happy trading.