Potential Start of Market Crash!
What a week it was last week! The market was negative exactly how I predicted it last Monday morning due to the combined effects of a grossly short term overbought condition brought about by 6 consecutive positive weeks as well as a looming BIG resistance level with the rate hike hammer back again as the catalyst for all these. However, what I didn't expect was the magnitude and intensity of this pullback. The S&P500 actually fell through the 30MA like it wasn't there at all instead of testing it for support before deciding where to go next like it usually do.
Such readiness to go straight down upon meeting a resistance level reminded me once again of August 2011 and October of 2007, when the market struggled at a certain new high, took a hit, came back up to test the new high again just to be beaten down into a very significant down trend. This failure is a very critical one and has every characteristics of the start of an intermediate bear trend... even an all out market crash due to the market being within the framework of an intermediate and primary neutral trend with all the technical timeline due for a major market crash now supported with the potential rate hike and the rekindled global terror unrest (Prayers be for Paris and Syria and everywhere else affected but not in focus by the media). In fact, this pattern falls exactly within the structure that I expected (mentioned in my reports months ago) for major market crashes where the market struggles around a new high price for an extended period of months before going into critical failure for the ensuing market crash.
With bond yields around recent highs and therefore a good escape for investors and total equities put call ratio steady in favor of put options trading (learn what put options are for FREE) exactly how it is everytime the market is truly bearish, I would see the next two weeks as extremely bearish inclined. Wanna profit with me in this bearish inclined market? Join my Master's Stock Options Picks service now!
Market Crash Timer: ORANGE
For now, the market remains in short term bear trend within an intermediate and primary neutral trend.
Warning: This report is NOT concise actionable investment advise! It is just my daily views and outlook on the market. For my exact trading picks, please check out my Master's Stock Options Picks Service!
Such readiness to go straight down upon meeting a resistance level reminded me once again of August 2011 and October of 2007, when the market struggled at a certain new high, took a hit, came back up to test the new high again just to be beaten down into a very significant down trend. This failure is a very critical one and has every characteristics of the start of an intermediate bear trend... even an all out market crash due to the market being within the framework of an intermediate and primary neutral trend with all the technical timeline due for a major market crash now supported with the potential rate hike and the rekindled global terror unrest (Prayers be for Paris and Syria and everywhere else affected but not in focus by the media). In fact, this pattern falls exactly within the structure that I expected (mentioned in my reports months ago) for major market crashes where the market struggles around a new high price for an extended period of months before going into critical failure for the ensuing market crash.
With bond yields around recent highs and therefore a good escape for investors and total equities put call ratio steady in favor of put options trading (learn what put options are for FREE) exactly how it is everytime the market is truly bearish, I would see the next two weeks as extremely bearish inclined. Wanna profit with me in this bearish inclined market? Join my Master's Stock Options Picks service now!
Market Crash Timer: ORANGE
For now, the market remains in short term bear trend within an intermediate and primary neutral trend.
Warning: This report is NOT concise actionable investment advise! It is just my daily views and outlook on the market. For my exact trading picks, please check out my Master's Stock Options Picks Service!
posted by Jason Ng at 7:58 PM
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