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

Stock Market Final Pop - It Can’t Wait Any Longer – Deja Vu!

Stock-Markets / Stock Markets 2016 Aug 14, 2016 - 12:40 PM GMT

By: Chris_Vermeulen

Stock-Markets

The stock market tends to repeat itself on regular bases. Why? Because it moves mainly based on the emotions of market participants, with the exception of extreme times when the masses are moving the market with extreme fear or greed, at which point they are flooding the market with buy or sell orders to create a final pop or drop in the market just before a major market reversal.

As with everything in the universe, everything moves in cycles, periods of expansion and contraction, and there are regular wave-like patterns that happen on a regular basis no matter the time frame one is reviewing on a stock chart.


Below are three charts, each showing a similar price pattern of extreme washout lows, followed by roughly a 1.5-month rally taking investors on a roller coaster ride from fear and complete panic to greedy know-it-alls.

Current S&P 500 Daily Chart Price Action


October 2014 – S&P 500 Daily Chart Price Action

September 2015 – S&P 500 Daily Chart Price Action


Trading Conclusion:

In short, no pun intended, us large cap stocks look and feel toppy here. I feel a correction is likely to take place any day now, and the big question is “how much will the stock market pullback?

Will it be another 4-5% correction similar to the chart examples above? Or will it be something larger 8-15% correction?

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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.

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