The 5 Charts You Have To See If You Think The Market Is Ready To Crash

1.) This first chart comes from @RyanDetrick. It shows what the S&P 500 has done on average over the last 40 years during the month of March versus what it is doing this March. The difference is massive:

Love this chart of avg. $SPX past 40 yrs with 2014 on there. Umm, 2014 didn't get the note. $SPY

— Ryan Detrick (@RyanDetrick) Mar. 14 at 11:10 AM

2.) Have you looked at a monthly chart of the S&P 500 recently? It’s an amazing sight to see. The chart below, which was shared by @HCPG, shows how the market may be running into huge resistance at the upper band of an ascending channel:

Nothing like a look at a monthly chart once in a while to gain perspective $SPY

— HCPG (@HCPG) Mar. 14 at 11:31 AM

3.) One of my favorite market sayings of all-time is, “Every bull market has a copper roof.” I don’t know who said it, or when, or where, but the recent drop in copper is something no one should ignore. This chart was shared by @1nvestor:

$Copper Spot. Looks like a Bear Cross soon for 50/200 SMA. RSI down with the Titanic at 18.83 $HG_F

— Derald Muniz (@1nvestor) Mar. 14 at 02:23 PM

4.) Investors and traders of all timeframes and strategies love to see when financial stocks lead the market. Strong financials can sometimes signal economic and credit growth. However, over the last few months, the largest financials ETF ($XLF) has been underperforming relative to the largest S&P 500 ETF ($SPY):

Here are financials trending down vs the S&P500 since peaking last July. $XLF vs $SPY daily chart:

— J.C. Parets (@allstarcharts) Mar. 14 at 11:31 AM


5.) Biotech was one of the hottest sectors of 2013. Stocks like Gilead Sciences ($GILD) and Celgene ($CELG) were both up 100% last year. But a different picture is already being painted this year. Just look at the chart below, which was created by @KimbleCharting. It shows how Gilead Sciences ($GILD) is currently breaking a huge uptrend it’s held since 2012:

Breaking support, white hot asset class! $GILD $IBB $STUDY $QQQ

— Chris Kimble (@KimbleCharting) Mar. 14 at 10:29 AM

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