As if all the recent action in the reeling stock market, just on its bloodied face, isn’t troubling enough, there’s another reason to be worried.

Sven Henrich of the Northman Trader blog rolled out what he describes as “the ultimate bear chart”. That serves to back up former Federal Reserve Chair Alan Greenspan’s thoughts from last week, which went: “There are two bubbles: We have a stock market bubble, and we have a bond market bubble.”

In that spirit, here’s our chart of the day:

After last week’s breakout in the 10-year Treasury TMUBMUSD10Y, 0.701% above its 30-year trend line, stocks took — and appear to be taking — a beating. That prompted Henrich to take a harder look at that chart, which illustrates the ratio between the 10-year yield TNX, +1.46% and the S&P 500 SPX, -1.11% .

“The correlation is stunning to me from a technical perspective,” he writes. “Indeed, if Greenspan is right, this chart could have enormous implications for the next few years. This chart suggests a massive multiyear bear market could emerge.”

The ratio got hit last week, with stocks dropping and yields rising. For the trend to reverse, yields have to fall and stock rise. If it doesn’t happen, Henrich warns, the “massive multiyear head-and-shoulders” pattern could become even more alarming.

“Basically what this implies is that the entire rally since the early 2016 lows will turn out to have been a blow-off top,” he explained. “I’m not calling for an immediate collapse here, but I’m pointing to a possibly huge structural relationship between bonds and stocks, one that will likely take years to play out. But the signs of trouble are already in that chart.”

So, to avoid this scenario, he says that yields need to drop soon “or this market party may come to an abrupt end with deep reaching consequences.”

But before you look at today’s premarket action and get too panicky, fund manager Chris Ciovacco offers some words of wisdom:

Key market gauges

The bleeding’s not done yet. The Dow DJIA, -0.87% , the S&P 500 SPX, -1.11% and the Nasdaq COMP, -1.07% are all off session lows but are still getting hit. Crude US:CLH8 is down, while gold US:GCH8 is up. Europe SXXP, -0.66% is feeling the risk-off vibe, as is Asia ADOW, +0.33% , which closed mostly lower. Bitcoin BTCUSD, +0.79% is down again, falling under the $8,000 mark amid a broad crypto retreat.

The call

“Bull markets don’t die from old age,” says Guggenheim Partners CIO Scott Minerd. “They typically get shot in the head.”

We covered Minerd in this space a couple of weeks ago, when he said Davos might just be a flashing contrarian indicator and that investors should consider the positive message from the gilded boondoggle as a potential reason to sell. Turns out it would have been a pretty good move.

So, now what?

“I’m a bull for the next year or so,” he told Barron’s. “There is another 15% of upside in the stock market from 2017’s close, but after a 300% run [from the 2009 lows], the question is how to time the exit. What are the signs?”

He explained that he doesn’t think all the pieces are in place for a bear market just yet, though the parabolic nature of stocks right now is a bit unsettling.

“Now, individual investors aren’t in the market yet, and that’s why I’m still bullish,” Minerd said, adding that he’s looking for a flat yield curve in the first quarter of 2019 to signal the end of the bull run.

“Historically, once the yield curve goes flat, stock returns for the next 12 months approximate zero,” he says. “Then, a year later, you get the recession and bear market.”

“On the S&P 500 index, the current level [2819] is roughly where we could be a decade from now. Elevated stock valuations portend weaker returns over the next decade, and retaining some dry powder in the final year of expansion will allow equity and credit investors to take advantage of more attractive valuations,” he says.

The buzz

Philadelphia IS the buzz this morning. Quarterback Nick Foles led the underdog Eagles to their first-ever Super Bowl victory, and, more important for the rest of us, kept the Patriots and Tom Brady from winning another.

Hopefully it was worth it for this guy, who cashed in his 401(k) to attend. While Philly fans celebrate, don’t expect the same from bookmakers as the heavy betting was reportedly on the Eagles to win.

Check out:Super Bowl ad blackout — NBC denies glitch cost it millions

OK, enough, back to markets.

We could be looking at the biggest tech deal in history if Broadcom AVGO, -1.69% and Qualcomm QCOM, -3.64% ultimately tie the knot. Reports say Broadcom plans to raise its hostile bid to buy its rival chipmaker to about $120 billion.

As Spotify’s IPO nears, Apple AAPL, -3.17% Music is on track to surpass it and become the No. 1 music streaming service in the U.S.

Wells Fargo WFC, +0.08% says the sanctions that have followed its customer-account scandals could cut its profit this year by as much as $400 million.

The quote

“Us little guys working our butts off, we can’t get ahead. This is a once-in-a-lifetime opportunity to change my life” — Cedric Knight, one of many Kentuckians looking for bitcoin to fund their retirement. What could possibly go wrong?

The stat

500% — That’s how much Virgil Capital, a hedge fund specializing in crypto arbitrage, returned in 2017. Meet Stefan Qin, a 21-year-old Australian based in California who runs the $23.5 million fund. He tells the Wall Street Journal that he expects to keep posting positive returns, even if bitcoin keeps sliding.

The economy

If there are any more market fireworks to be had in the coming week, it probably won’t be due to any notable data points. We’ll get the ISM nonmanufacturing index for January at 10 a.m. Eastern this morning, and the latest U.S. trade deficit Tuesday. Other than that, it should be fairly quiet out there.

Read: Jobs, jobs, jobs!

Random reads

How bots and Trump fans made #ReleaseTheMemo go viral.

Inside the twisted world of Hollywood and why Uma’s really angry.

Meanwhile, a curveball from Harper’s: “I think ‘believe all women’ is silly. Women are unreliable narrators also.”

Then there are some men making a crypto utopia in Puerto Rico.

Why Justin Trudeau isn’t the leader he’s cracked up to be.

China’s surveillance state should scare EVERYONE.

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