Slow Motion Quick Sand Crash

The market is already crashing its just that most people don't know it.

Many people have noted that in early July the S&P had achieved its "DEATH CROSS". This means when the 50DMA crosses the 200DMA to the downside. We also saw the 50DMA cross the 100DMA on the downside as well in mid June. What also is notable is that this happened when both moving averages were sloping down. Double Ouch! Can and will this be an early warning sign of an impending market collapse?

Lets take it back to last year at this time.

You notice that in mid May 2009 the 50DMA had crossed the 100DMA on the upside and that the 50DMA was upward sloping. Very bullish. The S&P had a run from 900 to 950 before coming back down to 900. Its at that moment in early July that the 100DMA crossed the 200DMA to the upside as well. This led the mkt to surge pretty much the rest of the year through January 2010. From 900 to 1150 on the SPX. That's an impressive run up after getting the early cross signal in mid 2009.  The market was already rallying.

What do the cross's tell us today?

If history is in any guide it tells us that the market has already moved to the downside. The crash is happening before our own eyes yet we still listen to the idiots on CNBC and Bloomberg who tell us that the market is hanging in there. The market is cheap. The market has already discounted a recession.

The market does what it does regardless of race, creed, religion, and sexual orientation. It doesn't care if you are a nice guy or a bad guy. It is like the great white shark. Its the ultimate killing machine. You just better be on the right side of it when it decides to go in for the kill. You better be near the shore when Jaws dorsal fin leaps out of the water. The markets dorsal fin was spotted a few weeks ago when the death cross happened. Why are people still in the water? Do you have to ask?

You are seeing a rally at this moment after the death cross because the market is very much oversold and a bounce was expected. You are seeing such action. My best guess is that we probably saw the highs for this move this morning. The eyes of the storm are the rapidly downward sloping moving averages in the S&P 500. The PPT will be there to soak up the sellers again I am sure but then again that just adds more dorsal fin's to the water.