Another 5% down day in the not too distant future?

There was widespread panic in August with a 1000 point down day in the Dow. Here are reasons why we could see a repeat in the not too distant future: a) Back in August the Vix broke out above 25 just like it did today and went straight to 53. b) A death cross was just forming in the DOW and later in the S and P 500, Guess What? It is forming in the Nasdaq today (50 DMA below 200 DMA) c)Valuations are still pretty lofty if you look at measures like the Shiller Cape or Dividend Yield. d) Deflation is in the air, just look at China and the commodity complex. e) Flight to safety out of risk assets into the dollar, yen and treasuries much like in 2008.

your thoughts?

Submitted September 28, 2015 at 02:07PM by rajveers http://ift.tt/1L0V3iK