“I still believe the following: 1) that we did not then, and do not today, have the necessary conditions to say that today’s world has a bubble in any of the most important asset classes; 2) that we are unlikely, given the beliefs and practices of the U.S. Fed, to end this cycle without a bubble in the U.S. equity market or, perish the thought, in a repeat of the U.S. housing bubble; 3) the threshold for a bubble level for the U.S. market is about 2300 on the S&P 500, about 10% above current levels, and would normally require a substantially more bullish tone on the part of both individual and institutional investors; 4) it continues to seem unlikely to me that this current equity cycle will top out before the election and perhaps it will last considerably longer; and 5) the U.S. housing market, although well below 2006 highs, is nonetheless approaching a one and one half-sigma level based on its previous history.” ~ Jeremy Grantham, May 2016

By Catherine Austin Fitts

In last week’s Solari Report, I reviewed the latest Blockbuster Chartology from Rambus and the importance of the Shanghai markets, which were at an important technical line on the wedge that Rambus drew. If the Chinese markets manage to give a bullish signal over the next month, it would argue strongly for more bull market ahead for both US and global equities as well as precious metals.

Whatever happens to China, however, the signs are clear – the US equity bull market remains intact.

Here are Friday’s charts:

Chart Set One, Chart Set Two, Chart Set Three, Chart Set Four