From the desk of Steve Strazza @Sstrazza
Thanks to everyone for participating in this week’s Mystery Chart. The vast majority of respondents were either sellers or wanted nothing to do with this messy mess of a chart. Some of our less risk-averse participants were willing to bet on a failed breakdown and buy a reversal back above the recent lows.
In our opinion, this is the definition of a structural downtrend and there is very little evidence to suggest that will change anytime soon. With that as our backdrop let’s discuss why this chart is on our radar right now.
This is a weekly line chart of Real Estate (IYR) vs the S&P 500 (SPY) looking back about 20-years.