Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21
CISCO 2020 Dot com Bubble Stock vs 2021 Bubble Tech Stocks Warning Analysis - 6th Oct 21
Precious Metals Complex Searching for a Bottom - 6th Oct 21
FB, AMZN, NFLX, GOOG, AAPL and FANG+ '5 Waves' Speaks Volumes - 6th Oct 21
Budgies Flying Ability 10 Weeks After wings Clipped, Flight Feathers Cut Grow Back - 6th Oct 21
Why Silver Price Could Crash by 20%! - 5th Oct 21
Will China's Crackdown Send Bitcoin's Price Tumbling? - 5th Oct 21
Natural Gas News: Europe Lacks Supply, So It Turns to Asia - 5th Oct 21
Stock Market Correction: One More Spark to Light the Fire? - 5th Oct 21
Fractal Design Meshify S2, Best PC Case Review, Build Quality, Airflow etc. - 5th Oct 21
Chasing Value with Five More Biotech Stocks for the Long-run - 4th Oct 21
Gold’s Century - While stocks dominated headlines, gold quietly performed - 4th Oct 21
NASDAQ Stock Market Head-n-Shoulders Warns Of Market Weakness – Critical Topping Pattern - 4th Oct 21
US Dollar on plan, attended by the Gold/Silver ratio - 4th Oct 21
Aptorum Group - APM - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 3rd Oct 21
US Close to Hitting the Debt Ceiling: Gold Doesn’t Care - 3rd Oct 21
Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
Original Oculus VR HeadSet Rift Dev Kit v1 Before Facebook Bought Oculus - 3rd Oct 21
Microsoft Stock Valuation 2021 vs 2000 Bubble - Buy Sell or Hold Invest Analysis - 1st Oct 21
How to profit off the Acquisition spree in Fintech Stocks - 1st Oct 21
�� Halloween 2021 TESCO Shopping Before the Next Big Panic Buying! �� - 1st Oct 2
The Guide to Building a Design Portfolio Online - 1st Oct 21
BioDelivery Sciences International - BDSI - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 30th Sep 21
America’s Revolving-Door Politics Behind the Fall of US-Sino Ties - 30th Sep 21
Dovish to Hawkish Fed: Sounds Bearish for Gold - 30th Sep 21
Stock Market Gauntlet to the Fed - 30th Sep 21
Should you include ESG investments in your portfolio? - 30th Sep 21
Takeda - TAK - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 29th Sep 21
Stock Market Wishing Away Inflation - 29th Sep 21
Why Workers Are NOT Returning to Work as Lockdown's End - Wage Slaves Rebellion - 29th Sep 21
UK Fuel PANIC! Fighting at the Petrol Pumps! As Lemmings Create a New Crisis - 29th Sep 21
Gold Could See Tapering as Soon as November! - 29th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Global Stock Markets Topped 60 Days Before the US Stocks Peaked

Stock-Markets / Stock Market 2021 Sep 23, 2021 - 03:02 PM GMT

By: Chris_Vermeulen


In the first part of this research article, I highlighted a number of factors and technical charts that suggest the true peak in the US/Global markets happened in April/May 2021. Although the US markets continued to trend higher after that peak, the global markets, as well as a number of key indicators, suggested the bullish price trend had reached a peak and started to weaken after the April/May 2021 peak.

My assumption is this data shows the markets entered a highly speculative phase of trading after the November 2020 elections. History shows us that the 12+ months prior to a US Presidential election are usually filled with uncertainty and sideways market volatility. Then, just after the US Presidential election is completed, the markets usually enter into a trending phase related to the expectations and promises of the newly elected US President. 2020 was no different in this process. What was different was the fact that the US Federal Reserve was still pouring trillions into supporting the post-COVID global economic recovery. So this post US Presidential election rally may have become a super-charged speculative rally phase with the US Fed backing the trends.

Be sure to sign up for our free market trend analysis and signals now so you don’t miss our next special report!

The one key chart this highlights the April/May 2021 peak is the Weekly NYSE New Highs. The data on this chart suggests the NYSE moved into a period of hyper-bullish trending near the end of 2020 and continued to push to extreme highs in April/May 2021. After the peak level on this chart, in early May 2021, the NYSE new highs collapsed by more than 80% in less than 15 days. This represents an incredible reversal of sentiment for traders/investors at a time when the US stock market had just completed Q1:2021 earnings updates. Almost as if traders/investors decided “that’s it, the party’s over.” and started pulling assets away from the markets to protect profits.

In the first part of this research article, we suggested reviewing a few of our earlier research posts to get a better understand of how this market trend set up. I’ll share them here:

Most importantly, this research article highlights the transition into the new Depreciation Price Cycle and the fact that it should last until 2029 to 2031.

Moving onto current market charts and setups, we want to focus your attention on the IWP, Russell Midcap Growth ETF, Weekly chart, and the weakening market trend and price pattern that was set up recently. Not only are we seeing very weak volume in a bullish price trend pushing to new all-time highs, but we are also seeing a divergence between price and the RSI indicator suggesting this current peak is actually setting up as a potential FINAL peak in trend.

The Russell MidCap Growth ETF is uniquely positioned to reflect moderate price trending, potentially before the S&P or NASDAQ, because it reflects a broad swath of the market in terms of types of companies and a variety of industries/services. Watching the setups in the MidCaps and/or the Russell 2000 can often provide insight to major market trends and setups that are not evident in the NASDAQ or S&P 500. This is because many traders focus assets and perceptions into the US major indexes at a greater scale – often ignoring what is taking place in the Russell 2000 or the Russell Midcap Growth ETF. Therefore, we can often see a different perspective by watching these outlier symbols and price setups.

Our Custom Smart Cash Index Weekly chart presents a very clear image of the peak in April/Pay 2021 and also presents a very clear downside price rotation in the US/Global markets after that peak. We’ve drawn a BLUE LINE showing the April/May peak and a RED ARROW showing how this Custom Smart Cash Index has declined over the past 5+ months. The strength of the decline in price on this chart seems completely opposite to the rally on the IWP chart (above). How could the US/Global markets be representing moderate price weakness on the Custom Smart Cash Index chart, while still showing moderate bullish price trending on the IWP chart?

My interpretation of these two charts, in combination with the chart I shared in the first part of this research article, suggests the US and global markets were diverging in trend. While the US markets continued to push higher and higher, as traders continued to chase the bullish price expectations related to US economic strength and recovery, the global markets and the internal dynamics of this bullish price trend had completely diverged from the trends we were seeing in the US major indexes. Almost like the momentum of a slowing train – the US markets continued to trend higher while the true momentum of the markets showed a downward price trend was already taking place.

At some point in the near future, this diverging price trend is going to push the US markets lower or the global markets will find eventual support and attempt to climb higher. This divergence suggests the US markets were acting in a manner that is counter to the global market trends – which was likely the result of the US Federal Reserve continuing to support the markets with asset-buying programs and expectations the US government would step into ease COVID related economic concerns.

The reality of the current market environment is that these continued US Federal Reserve and US Government efforts to support the US economy can’t and won’t last forever. Eventually, the US and global markets need to function on real economic data and processes. The end of the extreme support efforts will likely cause the markets to revert towards more true valuation levels and potentially prompt a breakdown in this extended bullish price trend.

I’ve warned about this many times over the past few months with various research articles and my expectations that a post-COVID diminishing Sine Wave structure would present a rolling, sometimes volatile, series of future economic data points throughout the world. As the markets attempt to return to normal economic functions, excessive credit and debt within the global markets will become an issue.

Rolling economic data points will present some very interesting and concerning forward guidance for traders and investors. We’ve seen incredibly positive economic data points over the past 5+ months because of the COVID-19 collapse in the global economy. These extreme rally higher will certainly be followed by a reversion process over the next few months. Eventually, the global markets will be forced to transition to more normal market dynamic processes – which may represent a moderately large price reversion event in the near future.

As a technical trader, I love being able to share these unique and informative research articles with you. I see the markets continuing to have extended volatility over the next 24+ months with the potential for big rallies and pullbacks taking place. As much as that may scare some people, I see it as an incredible opportunity for big profits.

Big trends and increased volatility in a post-COVID normalization of the global economy are going to allow the markets to revalue and restore assets in a way that will provide an incredible growth phase for the markets (eventually). As I’ve explained in previous articles, the COVID-19 disruption was a major disruption to the global market economic process. It was big and disrupted nearly every economy on the planet. Now, in a post-COVID world, the markets will digest the extreme stimulus and support that has pushed most indexes higher over time and revert back to more normal economic functions. Eventually, all of this new capitalization and support will settle into proper economic purpose – driving a massive growth of global GDP (much like what happened after WWII). When we get to that point, we should see a massive growth phase in the global markets that may last 15+ years or more.

Please take a minute to learn about my BAN Trader Pro newsletter service and how it can help you identify and trade better sector setups.  My team and I have built this strategy to help us identify the strongest and best trade setups in any market sector.  Every day, we deliver these setups to our subscribers along with the BAN Trader Pro system trades.  You owe it to yourself to see how simple it is to trade 30% to 40% of the time to generate incredible results.

As something entirely new, check out my initiative URLYstart to learn more about the youth entrepreneurship program I am developing. This is an online program of gamified entrepreneurship designed to introduce and inspire youth to start their own businesses. Click-by-click, each student will be guided from their initial idea, through the startup process all the way to their first sale and beyond. Along the way, our students will learn life lessons such as communication, perseverance, goal setting, teamwork, and more. My team and I are passionate about this project and want to reach as many people as possible!

Have a great day!

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