The Moving Averages on the monthly chart crossed and confirmed that the market is headed for a crash within the next year.
Learn how to double or triple your money every month trading the stock market through the e-mini futures, SPY, and Forex instruments.
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Of course all of this big banksters have some kind of trading system that analysis the market and places trades based on all kinds of technical data that we retail traders don't have access to. It's a game rigged for the big institutions and it's something they guard heavily and don't let us know about.
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Back to the market...
On this monthly chart we can now see the 10 month moving average at 2017.53 and the 20 month moving average at 2023.95 SPX, which is the first time it's crossed since the 2007 prior high and later crash.
While it's not impossible for the market to turn back up and make a higher high the odds of that happening are very slim. Trying to think about what the Fed's could do to cause such a rally and I honestly can't think of anything? We are near zero interest rates, exhausted several QE programs... which have little to NO effect now. So what's left? I don't see anything that can save the market from a crash now.
On the shorter term...
We now have a clear 5 wave pattern down from the late December 2015 high, and what looks like the start of a multi-day or multi-week rally.
I have a turn date for February the 24th, so that "could" be the top of the coming oversold rally. I'm expecting at least a 50% retrace of the recent sell off, which would be around the 1946 SPX level, but I wouldn't be surprised if they squeeze it up higher to the 61.8% (1978) or the 78.6% (2023) level to get all the bears out before the next move down.
If the rally extends up to a higher Fibonacci level then my "turn date" could be wrong and/or off by a bit, as I'd expect it to take 2-4 weeks for the whole rally to complete and the higher it goes the longer period in "time" it should take. Naturally I can't rule out some kind of massive relentless "day after day" straight up move that just kills the bears and hits the higher levels, as then it could still end on my turn date.
After it's done we should see another big drop in the market that takes out the 1810 SPX recent low. Downside targets are the 1780 area first, then the 1730 area. This should be some larger (Major) wave C down. This should take all of the month of March to bottom with an expected low in early April.
Then another rally should take us up into May followed by another drop into June where I think we'll have a strong multi-month rally start from. This should take us into the August/September period where many crashes start. It's to early at this point to make a forecast on what to expect then so I won't even try.
One thing remember is that we have the Presidential Election in November so I'd think there will be some wild rallies up and big moves back down in the 2nd half of this year as they attempt to fool all of us retail traders telling us everything is "ok" just before the market falls off a cliff and scare us to death just before a powerful rally.
Everything is fluid and changing so be sure to follow my daily chart updates and come join me in my free chatroom for more up to date information, and any new FP's (fake prints) I find or ritual coded dates like the Lucy passport from the August 24th, 2015 crash.
Red.
P.S. If you have problems joining my chatroom just email me "red (at) reddragonleo (dot) com" as I've had to install more security to stop all the brute force attacks where spam bots try to setup fake email accounts on the registration page.
