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 S&P 500 Declined 1.7% while NIRP Crash Indicator Orange

 By Michael Markowski, Director of Research, May 9, 2016  

The NIRP Crash Indicator’s signal changed from its pre-crash or crash imminent Orange to its Yellow cautionary or crash—less-- imminent reading.  The signal had gone from Yellow to Orange prior to the U.S. stock market’s opening on April 28.   During the eight day period that the indicator’s reading was Orange ended on May 9, 2016, the S&P 500 went from 2095.15 to 2058.69, a decline of 1.7%. 

The signal’s change from Orange to Yellow was because the exchange rates of the Yen versus both the euro and the US dollar had stabilized during the week ended May 6, 2016.  Additionally, both the euro and the dollar appreciated by more than 1.1% versus the yen on Monday May 9, 2016. 

The NIRP crash signals are published and freely available each day at www.dynastywealth.com:

  • Red — full crash
  • Orange — pre-crash
  • Yellow — caution
  • Green — clear

For the NIPR Crash indicator to decrease from the crash imminent Orange or a crash Red reading to Yellow requires that the exchange rate between the yen and dollar be stable for an extended period of time or that the dollar advance significantly versus the yen. An increase in the indicator’s reading from Yellow to Orange requires a steady advance or a significant one day advance for the yen versus the dollar.

To have a better understanding of why the exchange rate volatility between the yen and the dollar is the primary metric powering the NIRP Crash Indicator the video entitled “Yen Volatility Causes Market Crashes” is highly recommended.

The NIRP crash signals are published and freely available each day at www.dynastywealth.com

  • Red — full crash
  • Orange — pre-crash
  • Yellow — caution
  • Green — clear

For the NIPR Crash indicator to decrease from the crash imminent Orange or a crash Red reading to Yellow requires that the exchange rate between the yen and dollar be stable for an extended period of time or that the dollar advance significantly versus the yen.  An increase in the indicator’s reading from Yellow to Orange requires a steady advance or a significant one day advance for the yen versus the dollar.  

To have a better understanding of why the exchange rate volatility between the yen and the dollar is the primary metric powering the NIRP Crash Indicator the video entitled “Yen Volatility Causes Market Crashes” is highly recommended.

The following reports and articles covering the NRIP Crash Indicator are also recommended:    

Dynasty Wealth, February 26, 2016, Acclaimed Analyst Produces “NIRP Crash Indicator” 

Equities.com, April 1, 2016, No April Fool’s Joke: NIRP Crash Indicator Elevated to Pre-Crash Warning 

Equities.com, April 9, 2016, Yen Volatility Puts Market on Precipice of Crash 

Equities.com, April 29, 2016, NIRP Crash Indicator Back to Pre-Crash Level