Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
What UK CPI, RPI INFLATION Forecasts for General Election Result 2019 - 11th Dec 19
Gold ETF Holdings Surge… But Do They Actually Hold Gold? - 11th Dec 19
Gold, Silver Reversals, Lower Prices and Our Precious Profits - 11th Dec 19
Opinion Pollsters, YouGov MRP General Election 2019 Result Seats Forecast - 11th Dec 19
UK General Election Tory and Labour Marginal Seats Analysis, Implied Forecast 2019 - 11th Dec 19
UK General Election 2019 - Tory Seats Forecast Based on GDP Growth - 11th Dec 19
YouGov's MRP Poll Final Tory Seats Forecast Revised Down From 359 to 338, Possibly Lower? - 10th Dec 19
What UK Economy (Average Earnings) Predicts for General Election Results 2019 - 10th Dec 19
Labour vs Tory Manifesto's UK General Election Parliamentary Seats Forecast 2019 - 10th Dec 19
Lumber is about to rally and how to play it with this ETF - 10th Dec 19
Social Mood and Leaders Impact on General Election Forecast 2019 - 9th Dec 19
Long-term Potential for Gold Remains Strong! - 9th Dec 19
Stock and Financial Markets Review - 9th Dec 19
Labour / Tory Manifesto's Impact on UK General Election Seats Forecast 2019 - 9th Dec 19
Tory Seats Forecast 2019 General Election Based on UK House Prices Momentum Analysis - 9th Dec 19
Top Tory Marginal Seats at Risk of Loss to Labour and Lib Dems - Election 2019 - 9th Dec 19
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19
What UK CPI, RPI and REAL INFLATION Predict for General Election Result 2019 - 5th Dec 19
Supply Crunch Coming as Silver Miners Scale Back - 5th Dec 19
Gold Will Not Surpass Its 1980 Peak - 5th Dec 19
UK House Prices Most Accurate Predictor of UK General Elections - 2019 - 5th Dec 19
7 Year Cycles Can Be Powerful And Gold Just Started One - 5th Dec 19
Lib Dems Winning Election Leaflets War Against Labour - Sheffield Hallam 2019 - 5th Dec 19
Do you like to venture out? Test yourself and see what we propose for you - 5th Dec 19
Great Ways To Make Money Over Time - 5th Dec 19
Calculating Your Personal Cost If Stock, Bond and House Prices Return To Average - 4th Dec 19

Market Oracle FREE Newsletter

UK General Election Forecast 2019

Stocks Break Downward In Afternoon Trading

Stock-Markets / Stock Markets 2019 May 29, 2019 - 12:51 PM GMT

By: Chris_Vermeulen


The afternoon price breakdown in the YM (Down Futures) continues to confirm our recent analysis.  We authored a three-part research post near mid-May discussing how the global tensions would likely play out in the global stock markets. We also authored another, more recent, research post about how the US stock markets would likely find weakness as news is digested after the US Memorial Day holiday weekend.  If we go far enough back in our research, we can find a very interesting research post from March 31, 2019, where our research team suggested July 2019 would be a key date for a potential market top formation.

Today, we are going to focus on the downside price rotation that is happening in the YM (Dow Futures) and how it points to an extended sideways Pennant/Flag price formation over the next few weeks before a breakdown move may cause havoc in the markets.

This Weekly YM chart highlights our expectations that the US stock market is entering a sideways price pattern formation that will likely result in a Pennant/Flag setup.  After the deep downward price rotation in Jan/Feb 2018 and another one over the Oct to Dec 2018 span, this recent upside price move failed to breach our Adaptive Fibonacci bullish price trigger level near $26,990.  This failure results in a “failed upside leg” currently – suggesting a new downside price leg will form in an attempt to re-establish price support before any new upside price leg will begin again.

Currently, the Bearish Fibonacci Price trigger level is near $21,415.  We do not expect the YM price to fall to this level right away – yet it is a possible target if the markets fail to find any support or the global perspective changes regarding the US stock market.  Our expectation is that support near $24,250 to $24,500 will hold up throughout this current rotation – over the next 4 to 10+ weeks.

This Daily YM chart provides a better shorter-term look at price rotation and our Adaptive Fibonacci price modeling system.  It is clear that the recent lows near May 13 prompted a “new price low” setup.  This is key to understanding the fundamental elements of the Fibonacci Price Theory.  This new price low tells us the current trend is Bearish and that until the price is able to breach the $26,800 level, we should consider the trend bias to be moderately bearish.  The BLUE downside price target near $24,400 now becomes our support level and the multiple lows near the $25,215 level become our immediate price floor.

This 240-minute YM chart highlights the peak/valley price rotation levels that have supported this downside price move over the past few weeks.  Pay very close attention to how these peaks/valleys have all aligned in a downward trend and how our Adaptive Fibonacci price modeling system is suggesting a move toward $24,900 is about to unfold.

Now is the time for traders to prepare for a weakening US stock market price rotation with a very strong potential for a retest of support levels.  Our expectations are support will be found near $24,200 (-8.9% from recent highs) or near $21,450 (-19% from recent highs).  The key to how this move plays out is if the Pennant/Flag formation we are suggesting will form or not.  If it does, we’ll have lots of time to prepare for this downside move. If not, it could be a very fast decline to support levels.

Remember, we’ve been warning about this move for many months.  We keep suggesting that 2019 and 2020 are going to be incredible years for members of our Wealth Trading Newsletter.  We’ve recently authored multiple articles calling for a July/Aug top in the markets and our research continues to suggest that Gold and Silver are dramatically undervalued right now. It’s almost like the old saying “we told you so” – but we just want everyone to be prepared for what is likely to happen.  Read our research posts from earlier this year and please try to understand that our proprietary predictive modeling solutions allow us to see into the future with some extra level of clarity that many people don’t have.


We continue to see money flow into the safe-haven assets like the Utility sector, bonds, and most importantly precious metals. I anticipated this and our XLU utilities ETF taken with members for 4.4% already, and our VIX ETF trade we closed for a 25% last week.

For May I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter. You can upgrade to this longer-term subscription or if you are new, join one of these two plans listed below, and you will receive:


Chris Vermeulen

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like

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

© 2005-2019 - 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