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Stock Indicator Creating Top Similar to 2000?

ByChris Kimble
Published 03/16/2023, 01:16 PM
Updated 07/09/2023, 06:31 AM

The NYSE Composite is a very broad measure of the stock market with over 2400 companies listed. So when the NYSE begins to underperform, market participants should pay attention.

Well, this has been happening over the past year… and it may be reaching a tipping point.

Below is a long-term ratio performance chart of the NYSE Composite to S&P 500 index ratio. You can see how the NYSE has turned lower of late in a topping-like formation.

New York Stock Exchange to S&P 500 Index Ratio Monthly Chart

More importantly, we ask if this topping formation could be a head and shoulders pattern? The last head and shoulders pattern of consequence appears at the Dot.com highs. Yikes!

Currently, this pattern bounced off of 12-year uptrend support. But with the banking news of late, this ratio is still trading on thin ice.

If this thing tips over at this support level, it would send an important cautionary message to the broader market. Stay tuned.

Latest comments

Well i know two guys that checked out from what the dotcom blow up did to there parents retirement money they were trading and lost every dime in 1 week. You young uns under 45 have no clue what real market pain is. You will eventually and we are wayyyy over due.
call.me
hlo
try to scare the chicken out of everyone
Where is that chick who had oil moving up today, in bed with sleazy bankers??
Interesting but Im not to worried about it. 2001 was its own time. This is now
He called KBE rolling over a few weeks back @ seeitmarket
Seems like we've been on the tipping edge for quite a while now lol
These charting things are so ridiculous. I could literally find 10 different ways to compare the exact opposite scenarios
if the chart doesn't say what you want it to just switch the time frame
that’s incorrect. Complex charting is meaningless. Simple chatting might have some significance. Because ppl will buy or sell at those levels etc. this is just a childs drawing game in my opinion.
Yes its easy after the fact. I doubt he was charting the same thing in 2001 saying look what happened in 1978, It must be happening again 🤔
Enough with the headline bait
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