Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
Gold GLD ETF Update… Breakdown ? - 20th Jun 18
Short-term Turnaround in Bitcoin Might Not Be What You Think - 19th Jun 18
Stock Market’s Short Term Downside Will be Limited - 19th Jun 18
Natural Gas Setup for 32% Move in UGAZ Fund - 19th Jun 18
Magnus Collective To Empower Automation And Artificial Intelligence - 19th Jun 18
Trump A Bull in a China Shop - 19th Jun 18
Minor Car Accident! What Happens After You Report Your Accident to Your Insurer - 19th Jun 18
US Majors Flush Out A Major Pivot Low and What’s Next - 18th Jun 18
Cocoa Commodities Trading Analysis - 18th Jun 18
Stock Market Consolidating in an Uptrend - 18th Jun 18
Russell Has Gone Up 7 Weeks in a Row. EXTREMELY Bullish for Stocks - 18th Jun 18
What Happens Next to Stocks when Tech Massively Outperforms Utilities and Consumer Staples - 18th Jun 18
The Trillion Dollar Market You’ve Never Heard Of - 18th Jun 18
The Corruption of Capitalism - 17th Jun 18
North Korea, Trade Wars, Precious Metals and Bitcoin - 17th Jun 18
Climate Change and Fish Stocks – Burning Oxygen! - 17th Jun 18
A $1,180 Ticket to NEW Trading Opportunities, FREE! - 16th Jun 18
Gold Bullish on Fed Interest Rate Hike - 16th Jun 18
Respite for Bitcoin Traders Might Be Deceptive - 16th Jun 18
The Euro Crashed Yesterday. Bearish for Euro and Bullish for USD - 15th Jun 18
Inflation Trade, in Progress Since Gold Kicked it Off - 15th Jun 18
Can Saudi Arabia Prevent The Next Oil Shock? - 15th Jun 18
The Biggest Online Gambling Companies - 15th Jun 18
Powell's Excess Reserve Change and Gold - 15th Jun 18
Is This a Big Sign of a Big Stock Market Turn? - 15th Jun 18
Will Italy Sink the EU and Boost Gold? - 15th Jun 18
Bumper Crash! Land Rover Discovery Sport vs Audi - 15th Jun 18
Stock Market Topping Pattern or Just Pause Before Going Higher? - 14th Jun 18
Is the ECB Ending QE a Good Thing? Markets Think So - 14th Jun 18
Yield Curve Continues to Flatten. A Bullish Sign for the Stock Market - 14th Jun 18
How Online Gambling has Impacted the Economy - 14th Jun 18
Crude Oil Price Targeting $58 ppb Before Finding Support - 14th Jun 18
Stock Market Near Another Top? - 14th Jun 18
Thorpe Park REAL Walking Dead Living Nightmare Zombie Car Park Ride Experience! - 14th Jun 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

Stock Market Forecast

Stock-Markets / Stock Markets 2015 Sep 08, 2015 - 03:17 PM GMT

By: Chris_Vermeulen

Stock-Markets

For some time now, I have been observing bearish “cracks” appearing within the stock markets. The speed of the market’s drop, during the month of August, came as no surprise to me.

The bear market rally ended last week, after it had a 50% retracement of its initial decline. By Friday, September 4th, 2015, the index was trying to hold on, so as to support that which was created by a critical short- term trend line that had already been violated. The DJIA weekly chart gives a good argument by expressing the view that a bear market may already have begun.


The signs should be very obvious! The prolonged uptrend that ended in a large congestion pattern, and which was followed by a sharp decline, which sliced through three important moving averages (30 week moving average, 90-week moving average and 120-week moving average), simultaneously, violated a 6-year trend line. The momentum indicators are also in a steep downtrend with no apparent sign of deceleration or divergence.

I believe that we should be prepared for an imminent resumption of the decline. Cycles are not due to bottom out until the end of this month, as I have further elaborated in this analysis.

After a long period of distribution selling, which capped a 6-year uptrend, the stock market has entered a corrective phase, which, at a minimum, should result in a significant decline. If the total amount of BEARISHNESS, which has been stored up during the distribution process, is released, it will manifest itself as a lengthy downtrend and reach a price level which is most likely inconceivable to most investors.

We are currently in wave 5 down on the DOW. Then, although wave 5 may not exceed the wave 3 low, due to the fact that they were quite steep (the wave 3 lows), there is a possibility that wave 5 may be truncated. After the wave 5 down is completed, and there is a corrective bounce, to the upside, I expect much lower prices, as explained further, in this analysis. Therefore, we shall remain on the sidelines and hold our current positions, for now.

Non-Technical but Supporting Arguments for a Bear Market/Market Crash

grain-of-saltThis info below is to be taken with a grain of salt. I only talk about it because it falls in line with my technical outlook.

This past weekend´s and next weekend’s updates, are likely to be, the most important ones, of the entire year of 2015. We are approaching the last week of the Jewish year “5775”, and the last days of the “Elul”. The 29th of Elul will fall on Sunday, September 13th, 2015, which is on the same day that we will observe a New Moon and a Solar Eclipse.

Markets are closed on the Sunday prior, but on Monday, September 14th, 2015, (which is the first day of the Jewish New Year) it will be a very critical day within the US markets. This will become a very volatile day for all assets. I believe, we see September 14th, 2015, as the most likely day for a “US stock market crash” in correlation with the Shemitah cycle (as I have extensively discussed in several previous articles). Potentially, this “stock market crash” could become much more severe than the one we had experienced on August 24th, 2015.

The Jewish Year 5776, which begins, on the very day of September 14th, 2015 is exactly 4000 years after what some refer to as the “Year of the Devil”, while others refer to it as the “Year of Lucifer”.

During the next critical trading days, the last trading day of Elul is September 11th, 2015 which corresponds exactly fourteen years after 09/11/2001! I forecast that September 14th, 2015 will become an important closing price swing low for US Index’s and it should also become a strong declining day for stocks. On September 15th, 2015, the SPX is likely to trade lower than it will, on September 14th, during some point of time, but the index’s are likely to close higher. September 16th through September 18th, 2015, will then become BULLISH, and it is my belief that the index’s will invert into a swing high.

The big picture will show that September 14th & 15th, 2015 are the most important turning points for US stocks occurring during the month of the “Shemitah”. Once we hit a low on September 14th and 15th, 2015, as I am forecasting, I recommend that you follow my daily updates.

I believe that there are “hidden signs” that the Federal Reserve will raise its benchmark rate during its next meeting on September 16th through September 17th, 2015. Contrary to popular belief, this will help the US stock market because the bad news will be out of the way. A rate hike is clearly positive, as I project that a rate hike or MODIFICATION to the current rate, is on the horizon. As the Federal Reserve does not publish their upcoming policies, I will call it a “high probability prediction”.

I project along with my forecast, and stating that September 14th, 2015 will become the most important day during this cycle. Possible target prices for an SPX CLOSING price on September 14th, 2015 will be 1833, 1809, 1777, 1718 and 1666.

I expect major volatility, within the markets, to continue for at least the next two weeks, if not longer.

Take Advantage of the Market Crisis and Profit: www.TheGoldAndOilGuy.com

Chris Vermeulen

Join my email list FREE and get my next article which I will show you about a major opportunity in bonds and a rate spike – www.GoldAndOilGuy.com

Chris Vermeulen is Founder of the popular trading site TheGoldAndOilGuy.com.  There he shares his highly successful, low-risk trading method.  For 7 years Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets.  Subscribers to his service depend on Chris' uniquely consistent investment opportunities that carry exceptionally low risk and high return.

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

© 2005-2018 http://www.MarketOracle.co.uk - 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

6 Critical Money Making Rules