"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis." ~ Jesse Livermore
The irony of that quote is that Jesse Livermore knew this better than anyone and he still fell victim to it in the end.
SPX v TNX daily the 10 yr found support and bounced but not convincingly so. If bonds weaken and allow the yield to rise then we could see a bounce in stocks. If the TNX support fails then stocks are likely headed lower.
Click on chart to enlarge
SPX weekly domed house below support. See how it ends the week
DJIA weekly domed house below support. See how it ends the week
This long term DJIA monthly megaphone is going exactly as I expected. It looks almost identical to the GFC top reversal. We have a rejection off the megaphone. A dip below the kijun sen. A rebound back above the kijun sen and now looks like January will close back below the kijun sen.
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