Currently, a 'sharp fall' is now anticipated within the equity markets! This
decline will be accompanied with 'new volatility'. There is a great deal of
'uncertainty 'within the U.S. markets. Currently, we are viewing a 'textbook'
'head and shoulders pattern' in the SPX and is going
to be a big inflection point we look back on months from now.
There are less and less stocks that are participating in the recent move upwards
which suggest a technical breakdown is likely to happen.
The 'cycles' of the SPX have recently confirmed that we have now witnessed
the 'highs'. The 'top' is currently in place and I expect that the 'negative
trend' will continue to persist.
See my live analysis charts and forecast click
here
The 'smart money' has been exiting the equity markets during the last few
weeks with strong waves of selling volume taking place on a consistent basis.
Yesterday morning, Monday, May 16th, 2016, I alerted my subscribers to two
new positions to enter into so as to take advantage of during this next significant
market move and change in volatility.
Consequently, consumers have already started to slow down in their spending.
They will change their past behavior, and, as a result, will begin to save
(whatever funds that they may still have) as stocks start to fall in value
along with the average investors retirement accounts. The present day spending
behavior will come to a grinding halt in due time!
Before "The Great Credit Crisis of 2007-2008", the 'smart money' exited the
equity markets in November of 2006. And it appears that the NDX-100 and the
Russel 2000 are leading the 'charge' downward once again for the pending market
correction.
We are, once again, repeating this same technical pattern, now!
Concluding Thoughts:
In short, the first chart I showed in this article paints a very clear picture
of where stock prices are headed - Lower.
Large cap stocks over the past year have been making lower lows and lower
highs. The most novice of traders knows what that means... It means, we are
in a down trend.
There are many ways to take advantage of what is about to unfold next, but
how you play it really depends on how much money you have to play with and
the level of risk tolerance you have.
