Wednesday , 26 July 2017


Fitzpatrick: Consumer Confidence Double-Top Suggests Stocks Could Plunge

 
Looking at the charts we…[see] a very strong double-top formation – very similar to what we saw back in 1980….[which suggests] that we are headed all the way back down again, possibly even to the lows that we saw in 2011….This is likely to weigh on equities. Words: 291
 
Ben Duronio, of www.businessinsider.com, reports* that in an interview with King World News (go there to read/hear the interview in its entirety), top Citibank technical analyst Tom Fitzpatrick said that his group expects the stock markets to fall again thanks to the turn in consumer confidence.
Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), may have edited the article below for length and clarity – see Editor’s Note at the bottom of the page for details. This paragraph must be included in any article re-posting to avoid copyright infringement.

Duronio quotes Fitzpatrick as saying, in part:

Contrary to what most people think…consumer sentiment drives the equity markets rather than vice versa. We saw in 2000, 2007, and again in 2011, that when consumer confidence peaked and turned, it was an early warning sign that markets were headed lower. Within a couple of months you started to see equity markets come under pressure. It’s been no different this year, with the consumer confidence turning in February. Then we saw the S&P turn in April, and the Dow top out on the first trading day of May.

Looking at the chart [below], we’re convinced it’s a very strong double-top formation, very similar to what we saw back in 1980. The suggestion to us is that we are headed all the way back down again, possibly even to the lows that we saw in 2011, when we got down to about 41 on the index. This is likely to weigh on equities.

citi stocks

King World News

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[Duronio continues:] Fitzpatrick [also] thinks European government bonds are signaling a downturn in stocks, saying: “We expect to see a re-emergence of the stresses, as well as the equity markets beginning to fall again. Our feeling is we will see that once again after we get through this weekend.”

*http://www.businessinsider.com/citi-stocks-fall-consumer-sentiment-2012-6#ixzz1z6QWdBuJ  (To access the above article please copy the URL and paste it into your browser.)

Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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