David,

I've seen lots of these kinds of charts over the years. Most of them don't play out. Things rarely play out the same way twice.

What is more important is are divergences in key markets (like BTC and PM's taking off). Fundamentals are important too although the markets can ignore them for some time.

Personally, I strongly believe the market was crashing in late 2015 and would have done so if the ECB and BOJ hadn't doubled down at the time. Had they not intervened, the chart above would be a mute point.

Today the DOMINANT FUNDAMENTAL FACTOR in the markets is the CENTRAL BANKS. They giveth and they taketh away. Arguably, the markets ceased to exist once they started buying the markets directly.

I am highly doubtful that they will be able to scale back their asset purchases without crashing the market. They have backed themselves into a corner and cannot get out now. This appears to be by design however. I believe their intent is to massively inflate the market in order to make liability obligations a mute point. Social security, pensions, and even 401k's aren't a big deal if those dollars aren't worth much. Massive inflation also helps to keep the housing market going. I think this is why corporations could justify their massive buybacks while making new highs at the time. Under normal market conditions this would appear as insanity but if they knew inflation was coming, then maybe not.

Unfortunately, this inflation is extremely skewed in favor of the markets, and has only made the situation worse for the middle class and those living in poverty. This is why we are seeing massive declines in consumer sectors like retail, restaurants, auto, etc. The middle class is DYING.

We are rapidly aproaching a neo-feudalist society where the central banks are at the top, corporations and government employees are the vassals, military/police are the knights, and the remaining 99% will be the peasants, relegated to slavery and extreme poverty.

There is (a little) hope. Certain blockchain technologies like Bitcoin and Steemit serve to majorly disrupt the plans of the ruling class elite. They know this and the are currently working on ways to maintain their control. Some of the things they are working on include ending net neutrality, making VPN's illegal, introducing their own blockchain technologies, and of course MASSSIVE PROPAGANDA campaigns against anything that could threaten their hegemony.

The solution lies in a massive global revolt against central banks. Bitcoin could provide a means for people to revolt. Indeed, it's already happening.

Will the masses regain control from the central bankers? I'm personally very sceptical. The masses don't seem to want to wake up to the reality of what is happening. There are some who sense something is wrong, seek out the facts, and are capable of CRITICAL THINKING. Most would rather bury their heads in the sand, be told what to think by MSM, and don't even know what the term CRITICAL THINKING means.

You sir, are one of the few who able to see the truth. Thank you for what you do. You are not alone.

Sincerely,

The Market Vigilante