Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Significant Top, Downturn to Send Prices Into an Abyss

Stock-Markets / Stock Markets 2012 Jul 15, 2012 - 10:24 AM GMT

By: Darah_Bazargan


The broad market averages are now revealing overwhelming evidence that a significant top is upon us. And in the coming weeks, I fully expect the world to witness a dramatic downturn that sends prices into an abyss.

Get ready Folks, as this upcoming event will be a force not to reckon with, and for those who deny such could suffer major losses in their investment portfolio.

You might recall in my last post, "Are we to Blame Nixon," I specifically warned readers to stay away from an imminent short covering rally that would emerge, but not to give credence to its allusion of a renewed uptrend.

Unlike most short covering rallies, this one has been all but convincing. It fell short of fullfilling the reek of euphoria in the marketplace, and barely neutralized the negative senitment that engendered during the previous decline in May.

The market is now on the verge of resuming its bearish downward momentum, and the reacceleration of this current decline will categorically be one of much greater magnitude. Stocks will undergo an aggressive sell-off that generates fear and anxiety among investors of every description. This liquidation process will lead to capitulation, where neither buyers nor sellers desire to participate in the marketplace.

My best guess is that this momentary spark in equities will soon fizzle out and stocks find their breaking point sometime between now and the next 10-12 trading sessions. This scenario should materialize in a crawling-like descent, much like the one last week, followed by a 3-5 day mass exodus.

S&P 500- Daily Chart


© 2012 Copyright Darah Bazargan - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in