Friday, July 19, 2024

ES Morning Update December 12th 2018

Last Chance To Get Short Before The Crash

Yesterday the rally up stalled out shortly after the open and started to drop back. This morning we are up again in the premarket so I would say that we saw the A wave up and B wave down complete Tuesday and we are now in the C wave up this morning. It's a weak ABC for sure but that's common in bear market, which we appear to be in currently. At this point I don't think we'll make it until Thursday as it's looking like we'll top out from this rally today.

That suggests that another wave down will start later today or Thursday. It's hard to say if this next wave down is going to take out the current lows or stop midway and reverse back up for another ABC wave pattern. But my guess (looking at various charts and technical s) is that the next wave down is the start of the crash wave. The dark red falling trendline of resistance is pointing to 2680 today but I'm not sure if we get up that high or not?

If so, it's the last great shorting spot before the crap hits the fan for the bulls. I still don't really believe 100% for sure that we are going to crash in December, but that's what the charts tell me, so I listen. If the bulls could just chop this around for another week then I'd say the normal bullish seasonality pattern would kick in and they'd avoid a crash. But that requires all the fighting between Trump and Mueller and gang to take a break until the new year, and it's not looking like that's going to happen.

There's a fierce battle going on here and the stock market is not happen. Some mass arrests by Trump (if he wins) of the Clinton's, Obama's etc... would cause a ton of panic in the market. Or if Mueller and gang win then impeachment for Trump would also cause the market to tank. Either way I don't see the market as happy.

The criminal cabal (the Clinton's, Obama's, Bushes, liberals, etc...) will cause a crash in the market themselves if they get through in jail, and of course an impeachment of a president would too. It's a "no win" situation that should be push out until next year to calm the market down but it's not looking like either side is backing down. I expect something to come out over the weekend that will panic the market this come Monday, so get some popcorn and enjoy the show.

Author: Red

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