S$P 500 Index (weekly)

This weekly chart of the S&P 500 index suggests that we will be getting the long deserved consequence of the delinquent behaviour of unregulated capitalism and related greed.

Otherwise known as what goes undeservedly up must come down. 

And who better than than a deluded believer in unregulated capitalism to be the witless cheerleader.

(Not that there are any better candidates).

Unfortunately for the common man it is a story of theft of life support by those who have too much already and should know better. Just proves we are all with inadequate intelligence to protect ourselves from our own human nature.

So the FED spooked the market by giving a story of rate increases. The opaque buyback money-tree syndrome suddenly became transparent and revealed a market full of zombies. The crash had momentum enough to annihilate the markets until Trump intervened.

But now the market knows that it is on evaporating life support and it has been feeding on carcinogens. It knows that it must seek a cure for its self-inflicted cancer instead of just taking more pain-relieving opioids. The cancer has now reached the brain and the inevitable is now arriving. The buyback syndrome is ending and the zombies are coming out of hiding.

The longer the syndrome is maintained the worse the end result will be. But this has been the story for the last decade already and the end result has just been delayed and delayed whilst its prospective impact has been growing exponentially. The medicine has never been taken, but the world moves on and toys with concepts such as alternatives to the unsavory banking model that is still in use. The Supercycle correction has plenty of room within which it can play out and probably needs to run into the next US Presidential cycle.

Technically, the chart indicates that the corrective cycle C4 was 9 years (extended by interventions that commenced following the dotcom bubble) and the C5 cycle leading to the conclusion of Supercycle SC1 has been manufactured over a further 10 year period. 

It is historical fact that the deregulation of the capital markets that were initiated by approvals given by the naive President Clinton and the over-lobbied (heavily bribed) Congress have brought about massive wrongdoing. Whilst cosmetics have been applied the gross wrongdoings have continued unabated and the Congress remains conflicted by its own corruption whilst Dems have seemingly concentrated most all of their time on distractions and deflections that have the symptoms of obsessive compulsive disorder and point to some very serious issues that are being avoided.

LINK: Spot Gold

LINK: Slowing Economy, Plunging Stocks Are Forcing The Fed’s Hand

LINK: China A50 (Weekly)