The odds of a stock market crash are typically extremely low. But on rare occasions a setup develops where a crash becomes a distinct possibility. The odds in favor of one increase to a point where it’s almost a coin flip.
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This is one of those times. This report shows you why, and the most likely outcomes over the next few weeks and months (subscriber version). .
On top of the technical aspects, the liquidity/monetary environment, is hostile. Inflation is raging and the Fed has been placed in panic tightening mode. Under almost no circumstances that I can imagine, will this end well.
Cycles All swing cycles are in gear xxxx xxxx xxxx (subscriber version).. There’s still potential for xxxx xxxx xxxx into the 6 month cycle low due in xxxx xxxx xxxx.
Projections now range from xxxx for the 4 week cycle, down to xxxx for the 10-12 month cycle.
A 13 week cycle low is due xxxx xxxx xxxx (subscriber version), at a projection of xxxx . However, short cycle lows aren’t ideally due until xxxx. The 6 month cycle bottoming window runs from xxxx – xxxx.
Third Rail Chart – The test of the low has begun. That’s at 4222.62. Before they get there, there are support levels indicated around xxxx xxxx xxxx (subscriber version).. The bottom of the short term channel starts the week around xxxx and drops to around xxxx on Friday. The centerline of the intermediate channel starts the week at xxxx and drops to around xxxx on Friday. The trend will remain weak if it stays below that line. To break the short term downtrend channel, the market would need to clear xxxx by Friday.
Long Term Weekly– The 3-4 year cycle oscillator has rolled over, signaling a bear market. Both long term cycle momentum and 3-4 year cycle momentum are on the verge of breakdowns that would signal both a cyclical and secular bear market, especially if this coincides with a weekly close below xxxx (subscriber version).. That would complete a major top pattern with a measured move target of xxxx xxxx for the first leg of the bear market.
Monthly Chart – The market now looks unlikely to return to the uptrend channel. Support is around xxxx in February, and approximately xxxx in March. Long term momentum is on a preliminary sell signal.
Cycle screening measures The cycle screening aggregate ended last week at -911. It’s a sign.
The cumulative line is now in position to break both the January and October lows. It would be bearish confirmation of the downtrend in price.
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These reports are not investment advice. They are for informational purposes, intended for an audience of investment and trading professionals, and other experienced investors and traders. Chart pick performance changes week to week and past performance may not indicate future results, as you know. Trading involves risk, and these reports assume that you understand those risks and manage them according to your tolerance.
