Yesterday’s drop did a lot of damage to the rally…
Yesterday’s drop did a lot of damage to the rally.
Stocks rolled over after hitting resistance (red line). They also broke the bearish rising wedge formation they’ve been forming over the last month (blue lines).
This is very bad news. Stocks had every reason to break to new highs between the Fed pumping billions of dollars in liquidity into the system and the trade deal progressing (China will be visiting the U.S. in October).
And yet, stocks couldn’t get it done. Instead they rolled over.
When everything points towards a bullish outcome and things get bearish, it’s extremely BAD for the markets.
So what comes next?
Momentum stocks are all suggesting a major breakdown is coming. Netflix, Wayfair and Tesla, all of them Wall Street darlings suggest the market could collapse 2,500 or lower.
Unfortunately that’s not the worst of it either.
Real world economic indicators say the market could go even lower.
Fed Ex, a major global bell-weather says the market could drop 2,400. And copper and Treasuries suggest the markets could crash to 2,000 or lower.
A Crash is coming… and smart investors are preparing NOW before it hits.
On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.
In it, we outline the coming collapse will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.
Today is the last day this report will be available to the general public.
To pick up one of the last remaining copies…
Chief Market Strategist
Phoenix Capital Research