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Have We Seen The Peak In The VIX?

The recent price breakdown in the US stock market (near the end of February 2020) prompted a very big spike in the VIX – could we see another HUGE spike with a deeper price selloff in the near future?

Our researchers believe this first downside price rotation in the US stock market may be just the first downside move in what may become a “waterfall” price event where price declines in a series of downside price waves reaching an ultimate support level.  The way the VIX works is to attempt to normalize implied volatility based on available options call and put data over a 30-day span.  The process of normalizing this data attempt to eradicate outlier data from the equation.  Thus, a VIX level of 40 has likely resulted in completed data that attempts to eliminate outlier data points that may have resulted in a much higher VIX value.

After this recent rally in the VIX level, the current normalization process will likely take the current range of the VIX (options data) into consideration for future VIX levels.  Thus, in order for the VIX to reach levels above 40 again, a much bigger downside price move would have to take place – possibly pushing the SPY to levels near $260 or lower.  A move like this would have to happen in an aggressive type of price decline in order for the VIX to rally back above 40.  Is this something we should expect in the near future?

Options Traders Be Aware: In our next post, we will touch one why trading options in this type of market condition is a major NO-NO.

Be sure to opt-in to our free market trend signals newsletter before closing this page so you don’t miss our next special report!

Our researchers believe the likelihood of a price decline like this is greater than 60% at this time.  We believe a Waterfall type of price event is unfolding where the price will attempt to source out true support levels as global central banks position ahead of any economic fallout for Q1 and Q2 of 2020.  It is because of these expectations that we believe global traders and investors will suddenly pull capital away from risk, into CASH and safe-havens while the unknowns of the global economic situation play out.  This dramatic shift from just 30 days ago may push the VIX to levels above 50 or 60 if we experience another aggressive selloff.

Liquidity becomes a major problem as Algos begin to pull capital out of the markets – like the FLASH CRASH of years ago.  This type of activity is already happening as many of our Algos and those of some of our friends have already started identifying severe risk factors in the markets as ATR and VIX have skyrocketed.  This lack of liquidity in the global markets could prompt an extended FLASH CRASH type of price event over the next 30 to 60+ days – possibly multiple FLASH events.

DAILY VIX CHART

This Daily VIX chart highlights the scale of the second Waterfall price event that recently took place.  The first Waterfall price move took place in early February and was very minor – yet our researchers caught it.

WEEKLY VIX CHART

This Weekly VIX chart highlights what we believe to be a likely scenario where VIX normalizes to levels below 25 over the next 2~3 weeks before another downside Waterfall event takes place as Q1 earnings data is about to hit the markets (near the end of March or early April).  It makes perfect sense to us that revisions and announcements will begin to hit the news wires relating to missed earnings and profit expectations near the end of March 2020.  If the Coronavirus is still working its way through Europe, the Middle East, and North America, we could be set up for a shocking April 2020 as Q1 earnings are announced.  This is what we believe will send the VIX skyrocketing to levels above 45~50 potentially.

A 25 to 35 day period of relative calm (2~3+ weeks) before earnings data starts to funnel into the news cycle.  Come early April, if companies have not yet already adjusted guidance, we could be in for a series of surprises that shock the US stock market and send the VIX skyrocketing.

SMART CASH INDEX SHOW GLOBAL EQUITY TREND

Our Smart Cash Index has recently broken below historical support channels and may begin to move into a new downward price channel soon.  This would be the first time in over 8+ years that this lower price channel has been seriously threatened in this manner.  A new downward price channel setup could indicate some extended downside price moves are in our future.  These types of downside price moves could indicate a broader global move away from risk as trader attempt to move capital into the safety of CASH and other investments.

CONCLUDING THOUGHTS:

As we’ve been warning for many months, 2020 is sure to be a very exciting year for skilled traders.  Don’t miss any of these incredible opportunities for broad sector swings and bigger moves in the US and Global stock markets.  These are the types of price swings that can make fortunes for skilled traders who are ahead of the bigger moves.

In fact, on Friday while traders and investors were down 15% with equities subscribers and I locked in 20.07% profit on our TLT trade and we avoided the equities collapse all together using my proven technical analysis strategies.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

I urge you visit my ETF Wealth Building Newsletter and if you like what I offer, join me with the 1-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a Free 1oz Silver Bar!

Chris Vermeulen
www.TheTechnicalTraders.com

SPY Breaks Below Fibonacci Bearish Trigger Level

Our research team wanted to share this chart with our friends and followers.  This dramatic breakdown in price over the past 4+ days has resulted in a very clear bearish trigger which was confirmed by our Adaptive Fibonacci Price Modeling system.  We believe this downside move will target the $251 level on the SPY over the next few weeks and months.

SOME RECENT HEADLINE ARTICLES WORTH READING:

On January 23, 2020, we issued a warning that the Put/Call ratio was warning of a potential Flash Crash

On January 24, 2020, we issued a research post related to the Wuhan Wipeout the markets

On January 26, 2020, we issued this research post about the start of a Black Swan event

On January 29, 2020, we issued this research post about a potential WaterFall selloff

Clearly, we were well ahead of this correction and issued multiple warnings to our friends and followers. This week we locked in 9.48% on GDXJ at the open on Monday, and today we are writing to suggest that $251 on the SPY is real support (see the magenta/purple area/line on this chart) and pay attention to the real risks at play in the markets.

This would suggest that the major markets will wipe out about 25% of the valuations in the major averages (ES, NQ, and YM), before finding any real support.  Obviously, there is a level near $208 that appears in RED on this chart.  If $251 fails to hold as support, then we immediately start to look at that $208 level for ultimate support.

This is the time when you want skilled researchers and traders backing you up and sourcing real solid trade opportunities for you.  We’ve been warning about this move for many months, suggesting that 2020 was going to be an incredible year for skilled traders and warning that a large downside price rotation was likely after August 2019.

In fact, one of our researchers predicted this move back in February/March 2019.  Visit www.TheTechnicalTraders.com to learn how we can help you stay ahead of these massive trends and find real opportunities in the markets.

Make sure to opt-in to our free market trend signals newsletter before closing this page so you don’t miss our next special report!

Chris Vermeulen
Technical Traders Ltd.

Current Equities Rally Similarities To 1999

Euphoria is a type of market rally where valuations, real market expectations, and global market concerns are pushed away from view while a trader based rush to rally takes place.  One of the clearest examples is the 1995 to 2000 DOT COM US stock market rally.  As the Internet burst into homes and businesses across the world, the US-led the way with dozens of new Internet-based IPOs touting glorious expectations, potential earnings and more.  Everyone had the idea this new medium would dramatically change the economy for the better and breakthrough traditional economic boundaries.

The rally that took place in 1995 through 2000 was incredible.  The S&P 500 rallied from 463 to 1535 – +235.57%.  What we find interesting is the “price wave formation” that took place within that rally.  There were a number of key price rotations that took place as the market continued to rally, we’ve labeled them A, B, and C.  The first rotation, A, took place in July~Dec 1997.  The second, B, took place from May 1998 to November 1998.  The last, C, took place between January 1999 and November 1999.  Technically, these rotations are significant because they represent “true price exploration” related to price advancement.  The price must always attempt to identify true support/resistance levels while trending.

When we compare the rally from 1995 to 2000 with the current rally in the US stock market, we can see a defined level of euphoric price advance after the 2016 US elections.  We must also pay attention to the previous price advance from the 2009 price lows as the global markets were struggling to recover from the Credit Crisis. Our research team identified the A, B, C rotations in the current price and associated them to the similar rotations in the 1995-2000 price rally as “key components of the current rally and a potential warning sign of a pending top formation”.

Our researchers believe the QE processes of the global central banks have set up a similar type of euphoric price rally in the current global markets even though current economic metrics are warning of weakening economic activity and weakening global market output.  The US Fed and global central banks seem to want to keep pumping money/credit into the global markets to keep the rally going – most likely because they are fearful of what a crash/correction may do to the future growth opportunities around the planet.

Yet, our research team focused on the C rotation in 1999 and 2019 – a full 20 years apart.  What interested our research team the most was the fact that the rotation in 1999 set up a full 21 months before the November 2000 US Presidential election.  The current C rotation initiated in January 2018 – a full 34 months before the November 2020 US Presidential Elections.  Anyone paying any attention will recognize the 21 and 34 are both Fibonacci Numbers – relating a 1.619 ratio advancement.

Are we setting up a massive top in the US stock market based on a Fibonacci price range expansion related to the patterns we have identified in this SP500 chart?  Have we advanced from the 2000 peak and 2009 bottom in some form of Fibonacci Ratio expansion that aligns with the C rotation pattern we have identified?

The rally from Bill Clinton’s second term start date to the peak in 2000 totaled 932.9 pts – +153.61%.  the rally from Donald Trump’s first term start date to our projected peak level totals 997.5 pts – +44.38%.  The rally in 2000 peaked at a range that is 200% larger than the ration between the two separate percentage point ranges.  Is this significant to traders?  Does it help to align our peak with the 1.619 Fibonacci ratio?

153.61 / 44.38 = 3.4612

3.4612 / 2 = 1.7306

Given the alignment of these values with a potential 200% range expansion theory, we need to start to look at TIME/PRICE ratios to determine if these rallies are aligned efficiently.

The rally from 1995 to the peak in 2000 consisted of 63 Months.  The rally from 2009 to our projected peak consists of 131 bars.  This represents a price TIME expansion of 207.9%

The rally from 1995 to the peak in 2000 consisted of a price move of +1081.2 pts (+235.57%).  The rally from 2009 to our projected peak consists of a price move of 2585.6 pts (390.49%).  The ratio between these two price expansions is 1.657.

The correction from the peak in 2000 to the low in 2009 consisted of 109 months.  The ratio between the 63 months (1995~2000 peak) to this correction time is 1.73.  The ration of the 2009~2019 rally time span is 1.20.  Thus, the correction between the peak in 2000 to the bottom in 2009 expanded at a rate of 1.73x the time it took to complete the DOT COM rally from 1995 to 2000.  The recovery that has taken place from the 2009 bottom to our projected top in 2019 would expand at a rate of 1.20x the correction time rate.  All of these levels align with common Fibonacci numbers and ratios.

In other words, we believe the current expansion in price is nearing a completed Elliot Wave/Fibonacci ratio peak (likely wave C) that maintains proper aspect ratios related to previous major price rotations.

Other major sectors and asset classes also look to be showing similar topping patterns like the real estate values and charts here.

CUSTOM VOLATILITY INDEX MONTHLY CHART

Our Custom Volatility Index shows extended volatility is increasing with price nearing the upper range for December 2019.  Notice the increase in the range of these bars since the just before the peak in January 2018.  This increased range suggests extreme price volatility has been pushing the markets for the past 24+ months.  If this volatility continues into early 2020 as our projected peak sets up, we may see some very big rotation in 2020.

2000 AND 2019 PRICE SIMILARITIES IN S&P 500

This 2000 peak to 2019 peak comparison chart highlights the similarities in the C price pattern that has setup.  In 1999, the C pattern set up with an initial peak, followed by minor downside rotation – just like in January 2018. The second peak was higher, followed by a much deeper downside price rotation – just like in Nov/Dec 2018.  And the final rally broke upward after a Pennant/Flag formation pushing higher by +25% in 2000.  The current upside breakout from the December 2018 lows suggests a 39.5% price peak – just above our predicted 32% scaled Fibonacci rally expectation.

FIBONACCI PRICE AMPLITUDE TOP LEVEL IS NOT MUCH HIGHER

The total scope of this price move over the past 40+ years is impressive.  These longer-term patterns still drive the markets to establish major peaks and valleys.  Take a look at this chart and try to understand the ratios that are being presented here.  21%, 34%, 50%, 62%, 100% and any combination of these levels using 2x, 3x or any multiplier constitute a Fibonacci structure.  One of the most important facets of attempting to understand the Fibonacci price theory is that the ratios must be somewhat aligned.

Pay attention to the Fibonacci Price Amplitude arcs (the circles) drawn on this chart.  They represent the price range from the peak in 2000 to the low in 2009.  The reason this range is important to our researchers is that it will properly measure the previous upward price rally and the current price rally in terms of price amplitude.  Pay attention to how the current price rally stalled and rotated near these arcs.  We believe the upper GREEN arc level will operate as major resistance for the markets – possibly setting up another “rollover” type of top similar to the one in 1999~2000.

Skilled technical traders still need to be cautious headed into 2020.  The current rally, and most of 2018 and 2019, have been setting up a very serious type of pre-top setup.  Any downside rotation in early 2020 may attempt to move lower in multiple waves – possibly spanning multiple years.

Currently, our research suggests a limited 2.5% upside price range before the SP500 will reach the GREEN resistance arc.  The US markets may reach this level before the end of 2019 and may begin a topping pattern before you finish reading this article.  Please stay informed and understand the structures, trends, and dynamics that are at play in these markets to attempt to reduce your risk.  Now is the time to trim your equity/stock positions and prepare for a much bigger swing in price/volatility.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

We’ll keep you informed as this plays out with Wealth Building & Global Financial Reset Newsletter if you like what I offer, join me with the 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a Free 1oz Silver Round or Gold Bar Shipped To You!

Chris Vermeulen
Founder of Technical Traders Ltd.
www.TheTechnicalTraders.com

Gapping Rotation in SPY and News Based Rallies Are A Warning

As holiday trading sets up in the global markets, the SPY is starting to show signs of volatility and warning of a potential top by gapping as price attempts to trade sideways.  This type of top formation, along with the fact that the overnight REPO facility continues to roil the markets, continues to draw our researchers to the conclusion that some type of debt or liquidity issue is just below the surface of the global markets.

We believe the topping formation in the SPY may be a sign that the holiday trading, normally spanning from just before Thanksgiving to sometime after January 10th or 15th, may prompt a very volatile price rotation in the global markets.  The lack of liquidity in the market at this time often leads to fairly narrow ranges in price.  Yet we are seeing volatility continue to stay somewhat high at this time and the REPO issue hangs over the heads of nearly every investor at this time.

One of our friends, an ex-Chicago floor trader, wrote to us just a few days ago suggesting he was receiving phone calls from many friends and associates in the US and overseas about the REPO issue.  We believe this issue is now taking root as a concern for global investors and could become a major issue for the markets going forward into 2020.  Our friend’s suggestion was to “buy gold and to pair back equity positions”.

This SPY Daily chart highlights the GAPS in price that has our research team concerned. A breakdown below $308 would qualify as a new Bearish Price Trend.  If the most recent gap is filled to the downside, the price may begin to accelerate lower, confirming our analysis.

On the flip side of that scenario, is a breakout above $315 that can hold for a couple of days or into the end of the week. That would trigger a new uptrend and possibly a Santa Rally.

This Weekly YM chart highlights the Hangman pattern set up last week with a very long lower wick.  This pattern set up at the price high is very indicative of a topping formation.  The fact that it set up just below the GREEN Bullish Price Trigger level near $28,175 suggests this level is acting as resistance.  A breakdown in price near this level could prompt a move to levels below 26,000.

Traders need to stay cautious over the next 5+ weeks as the lack of volatility in the market may prompt some very big price moves.  We believe the REPO issue may have some legs in the future and we believe a rotation may begin before Christmas 2019.

If liquidity continues to diminish, a flash crash type of event would not be uncommon.  We believe there are serious risks of a downward price rotation in the works and urge our followers and members to prepare for unknown risks over the next 5+ weeks.

Normal trading volume will not likely start to pick back up till after January 15th.  We have at least 4+ weeks of unknowns to contend with in a very illiquid market. We are going to trade with the short term market trends and be agile going into the new year.

S&P 500 & BOND TREND – DECEMBER 13

The stock market was setting up a topping pattern the past couple weeks but that has now been negated. The charts/technicals are bullish and so are we it’s that simple really.

Yesterday more chatter of tariffs and other news sparked a strong equities rally at the open bell which sent stocks sharply higher while bonds corrected. With yesterday’s S&P 500 hitting new highs after a fear-based correction two weeks ago the market is now back in rally mode and should have enough energy to sustain a rally into the year-end.

While we trade based on technical analysis, there will be days when news hitting the market and causes some large moves on the same day we have technical buy or sell signals. Like yesterday, for example, The past couple of trading sessions we have been talking about how the S&P 500 has to hie new highs to kick things back into a new uptrend after the previous week’s price correction. Yesterday, the SP500 broke to new highs, while bonds broke down triggering a new breakout rally in stocks. Sure there was news to help push price higher but none the less all our analysis has confirmed for the buy trigger.

We touch on other markets or news from time to time but we do not take any of the news into consideration for our trades. While there are many warning signs out there pointing to dark times ahead for the financial markets like the Repo market and many others, the reality is we follow the price, not the news. The market is climbing a wall of worry among educated traders and investors, and that’s what the market does best and we can’t fight it. Eventually, the price will turn down for a mega bear market and we will be there to profit from it, until then we ride the fearful rally higher.

Chris Vermeulen
www.TheTechnicalTraders.com

New Predicted Trends For SPX, Gold, Oil Nat Gas

This week should be more volatile as we mentioned last week. In fact, equities are all over the place in pre-market up, and now down with strong volume. While money, in general, is still flowing into the risk-on (stocks) be the average investor keeping a steady upward grid higher for stocks, and decline in bonds and gold, our short term analysis indicates that should be coming to an end and potentially this week.

EXECUTIVE SUMMARY:
– SP500 showing strong selling volume in pre-market (bearish)
– Bonds and metals trading sharply lower by 1% and 0.50% giving mixed signals for the overall financial market trend
– Natural gas up 2-4% this morning showing big volatility as its likely to start a bottoming process this week.
– Crude oil is up 2.3% bouncing off support but our cycles are pointing to choppy prices this week.


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Chris Vermeulen
Chief Market Strategist
www.TheTechnicalTraders.com

How To Use Price Cycles And Profit As A Swing Trader – SPX, Bonds, Gold, Nat Gas

News does drive certain market events and we understand how certain traders rely on news or interest rates to bias their positions and trades.  As technical analysis purists, so to say, we believe the price operates within pure constructs of price rotation theory, trend theory, technical indicator theory, and price cycles.  We’ve found that technical analysis distills many news items into pure technical trading signals that we can use to profit from market swings.

Price is the ultimate indicator in our view.  Price determines current trends, support/resistance levels/channels, past price peaks and troughs and much more.  When we apply our proprietary price modeling and price cycle tools, we can gain a very clear picture of what price may attempt to do in the near future and even as far as a few months into the future.  Price, as the ultimate indicator, truly is the mathematical core element of all future price activity, trends, and reversions. Before you continue reading make sure to opt-in to our free market trend signals newsletter.

We have been using cycles since 2011 and have developed multiple proprietary price modeling tools over the past 5+ years that assist us in finding and timing great trades.  Most of what we have learned over the past 8+ years is refined into “experience and skill”.  When you follow the markets every day – every hour, for the past 8+ years and see various types of price and technical indicator setups and reactions, you learn to hone into certain setups that have proven to be highly accurate trading triggers.

Our research team had dedicated thousands of hours to develop the tremendous skills and experience to be able to produce accurate cycles, and to also interpret them, which is what we specialize in doing. Determining which cycles to trade may look simple, yet they are far from easy to trade without the setups and price rotation signals.

We use a blend of the top 4 active price cycles in the market which updates daily. This data allows us to know where future price is likely to move over the next few days and weeks.  Within this article, we’ll show you some of our proprietary price cycles and modeling tools to show you how we run some of our specialized trading tools.

SP500 DAILY CHART – PREDICTED PRICE MOVEMENT

This SPY chart highlights the short-term price cycle modeling system where you can see how price reacted in alignment with our proprietary cycle tool.  If you look into the future, you can see that our proprietary price cycle tool is predicting the SPY may cycle into a potential double-top type of formation before cycling lower approximately 8+ days into the future.  One thing to remember is these cycle levels do not predict price target levels.  Don’t look at this chart and the cycle tool lines as price objectives – they are just trending bias levels scaled from 0 to 100 – just like a SINE WAVE.  Ideally, in order to identify price targets, we must fall back to technical price theory and Fibonacci price theory in order to identify target price objectives for the top formation and the potential downside price trend in the future.

BONDS DAILY CHART – PREDICTED PRICE MOVEMENT

This BOND Daily chart highlights a different type of price cycle – a momentum base/bottom type of setup.  You can see from our proprietary cycle tool lines on the chart how price movement has aligned almost perfectly with the cycle forecast.  Also, please notice how the price has moved beyond cycle highs and lows at times.  This relates to the fact that we discussed above – that cycles do not predict price objectives.  On this chart, a longer-term momentum base/bottom setup appears to be forming over the next 8+ days where the Bonds may begin a new upside price trend after the base/bottom forms.  This would indicate that we should be looking for opportunities and price triggers that set up after the bottom has setup – not before.  If we time our entry properly, we may negate any real risk for a trade with Bonds.

GOLD MINERS DAILY CHART – PREDICTED PRICE MOVEMENT

This Daily GDXJ chart almost perfectly highlights how the cycles do not align with real price objectives.  Throughout most of this chart, you can see the cycle levels rotate higher and lower near the extremes while price rotated in a much more narrow range.  Still, pay attention to how our proprietary cycle tool nailed nearly every rotation in price.  The range of the cycle lines is indicative of the scale and scope of the total cycle event.  Bigger cycle ranges suggest deeper, more volatile price trending events.

Notice how the current cycle ranges are much more narrow than the previous cycle ranges?  This suggests the current price cycle event may be more muted and smaller in volatility than previous price cycle ranges.

Our proprietary price cycle tool is suggesting that GDXJ will rotate lower to setup a moderate-term price bottom before attempting to move higher over the next 8 to 10+ days.  The upside price cycle may be rather muted as well – possibly only targeting recent price peaks near $40~42.

NATURAL GAS DAILY CHART – PREDICTED PRICE MOVEMENT

As you can see our past cycle analysis has been extremely accurate. In, fact natural gas can provide some of the largest and quickest gains out of all asset classes we cover. In August we traded natural gas for a quick 24% profit, and in October we have already locked in 15% again.  Our remaining position in Natural Gas is up even more after this incredible upside move predicted by our cycle tool.

This chart presents a very good example of how our proprietary cycle tool can align with price perfectly at times.  In this example, the expected cycle ranges, which highlight the intensity and potential volatility of the price trends, aligned almost perfectly with the real price action.  Currently, the cycle tool is predicting a moderate price rotation in Natural Gas before a further upside price move hits.

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these super-cycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener. PDF guide: 2020 Cycles – The Greatest Opportunity Of Your Lifetime

CONCLUDING THOUGHTS:

Opportunities are all around us.  Using the right tools to identify the true technical cycles, price cycles, and trading setup can help to eliminate risks and hone into more profitable trades.  It is almost impossible to time market tops and bottoms accurately, yet, as you can see from our work above, we have tools that can help us see into the future and help to predict when major price peaks and valleys may form.  Using a tool like this to help you determine when the real opportunity exists and when to time your trades will only improve your market insights and trading results….

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

Chris Vermeulen
www.TheTechnicalTraders.com

Weekly SPX & Gold Price Cycle Report

Today I want to talk to you about the SP500 because it’s on the verge of making a very significant move. We could experience a 15% rally or a 15% decline and it could be just around the corner.

Let me recap on both the short-term top this month, and then a look at the bigger picture of what happened last October through December and if we are going to see that happen again. There is the possibility we get a massive rally if the market breaks to new highs. The market is loaded and ready for action. Whichever way it breaks will have a strong impact on precious metals and bonds. Make sure to opt-in to our free market trend signals newsletter.

21 DAYS THEN A BREAKDOWN?

Let’s look at the SP500 for the last 6 months in the chart below. If we were to just draw support trendlines across the lows and a resistance trend line across the highs, you can see we still have some room for the SP500 to work itself higher and still be within the pattern.

Do you see the blue line that is on the chart? You will notice it follows price very closely and you’ll notice the purple line on the hard-right edge as well. This purple line is the forecasted projected cycle price that we are anticipating for the SP500 over the next 45 days.

I should note that as the market evolves and moves this price cycle forecast will change, but it gives us a good idea of current cycles in the market and where the price should go next.

Overall, we’re all you’re looking for SP500 to struggle to move higher because it acts as resistance. If resistance holds then it is likely the market breaks down and tests the August or September Low.

S&P 500 OCTOBER – DECEMBER MARKET CRASH TO REPEAT?

Let’s step back and look at last year’s price action. You can see that the cycle analysis is pointing to potentially another market crash down to those December low. If that is the case then it could be the start of something very significant like a new bear market.

So that’s where we’re at in terms of the SP500 and at this point, we’ve got another 21 days or so before the SP500 should start breaking below our white trendline support level.

While cycle analysis helps us paint a clear picture of what to expect looking forward up to 45 days I still rely on my market trend charts to know when I should be buying or selling positions.

BONDS – THE NATURAL INVESTOR SAFE HAVEN

The first safe haven investors flock to when they become scared are bonds. By looking at the chart we can see they should start to find a bottom based on our cycles.  Bond prices are stuck within a large sideways channel and should hold their ground until the SP500 starts collapse. If the SP500 breaks down then we’re going to see bonds move higher and should eventually break out and make new highs.

GOLD – THE SAFEST OF SAFE HAVENS

The true safe Haven is gold when it comes to a global store of value for all countries and individuals.

Take a look at the price of gold, as you can see it rallied in June and again in August when the cycles bottomed and started an uptrend. Right now the price is in a much larger consolidation (bull flag pattern) which is a positive sign. In fact, this multi-month pause makes gold even more bullish in my opinion. The longer a commodity trades sideway the more powerful the next move will be.

You can see based on our cycles analysis and forecasted price gold still has some potential weakness for a couple of weeks.

Understanding cycles and how to trade with them is much harder than most people think. If you do not understand cycle skew then you will struggle to turn a profit. I have been trading with cycles since 2001 and still, I find them very deceiving at times.

In laymen terms, cycle skew is when a cycle moves against the direction of the underlying asset’s trend. The chart below shows this clearly with the white lines. In short, gold is in an uptrend, and when the cycle moves down against the assets trend price will in most cases trade sideways. Do not try to short cycle tops when the trend is up, no matter how tempting it may be.

The key is to wait for cycles to bottom, then get back into position for the next upward move in the cycle and price.

I had a fantastic chat with Adam Johnson from BullsEyeBrief today and if you are interested in more juicy details on the SP500, Gold, and how I trades be sure to listen to the most recent podcast we did together at the top of his website https://bullseyebrief.com/podcast/

THE TECHNICAL TRADERS THOUGHTS:

In short, the stock market continues to keep the bull market alive, but investors have started to move into gold as a safe haven. The fear of a market downturn is growing which is why gold has rallied and started a new bull market. The money flow into gold is very strong and is warning us that US equities could enter a bear market in the next few months and that possibly something much larger globally could be at play as well.

Gold continues to just hold up well even with the current cycle forecast trending lower. Overall, we’re looking at about 20 days or so and we could see metals and equity prices make some incredible moves.

Keep reading our research because our proprietary tools have been nailing all of these price targets and move many months in advance.  The next bottom in metals should set up when our cycle bottoms – then the next upside leg will begin.  This time Gold should target $1800 and Silver should target $21 to $24.  This will be an incredible move higher if it plays out as we suspect.

I urge you visit my ETF Wealth Building Newsletter and if you like what I offer, join me with the 1-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a Free 1oz Silver Bar!

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

Chris Vermeulen
www.TheTechnicalTraders.com

Dow Jones May Have Already Bottomed But SP500 & Nasdaq Have Further To Go

Have you been following our research?  Were you prepared for this move like we were?  Did you profit from this incredibly quick and volatile downside price move in the US markets?  What is it going to do to the foreign markets and what next?

Our team of researchers has been all over this setup many months before it happened.  In fact, we issued a research article on September 30 suggesting our predictive modeling system was warning of a big price rotation in the NQ and ES.  On September 21, we authored another research article suggesting a “massive price reversion may be days or weeks away”.  On September 7th, we authored yet another article suggesting “US STOCK MARKET HASN’T CLEARED THE STORM YET”

In case you missed our research, read and follow our work below.  While others may have completely missed this week’s breakdown move, we called it more than 30+ days ago and provided very clear and concise information for all of our followers to know what was about to breakdown in the markets.  Our morning coffee video analysis recap is the one thing… that single investment that’s going to turn into the greatest investment you’ve every made for your trading and investments.

If you find that you get analysis paralysis from reading too many articles from various news and trading sites feel free to do your self a favor just skip reading 5- 10 articles a day and being confused about what to do next get our Daily 8 Minute Technical Analysis of all the major markets and commodities. Forget the news and follow the markets with our proven technical analysis methods.

September 30, 2019: PREDICTIVE MODELING SUGGESTS BROAD MARKET ROTATION IN THE NQ & ES.

September 25, 2019: DEMOCRATS LAUNCH FORMAL IMPEACHMENT – WHAT SHOULD TRADERS EXPECT?

September 24, 2019: IS SILVER ABOUT TO BECOME THE SUPER-HERO OF PRECIOUS METALS?

September 23, 2019: IS THE TECHNOLOGY SECTOR ABOUT TO BREAK LOWER?

September 21, 2019: MASSIVE PRICE REVERSION MAY BE DAYS OR WEEKS AWAY

September 17, 2019: VIX TO BEGIN A NEW UPTREND AND WHAT IT MEANS

September 7, 2019: US STOCK MARKET HASN’T CLEARED THE STORM YET

August 30, 2019: TRANSPORTATION INDEX POINTS TO STOCK MARKETS WEAKNESS

August 13, 2019: GLOBAL CENTRAL BANKS MOVE TO KEEP THE PARTY ROLLING – PART III

DOW JONES DAILY PRICE CHART

Now for the really good stuff, the YM may have already reached its lowest point and may begin to form a bottom near the 26000 levels.  This is the predicted downside price target level from our ADL predictive modeling system and it only took two big down-days to reach this level.  We really need to pay attention to how the markets react at this point and the YM will be key to understanding if the rest of the ADL predictions about the ES and NQ are likely to play out as we suggested.

DAILY SP500 INDEX

This ES chart highlights the downside price move to the 2880 level, our projected price target, and initial support level.  At this point, the ES has fallen, just like the YM, to levels that may prompt some price support.  We do believe the ES will fall further, possibly targeting the 2800 price level, before finding any real support.

Read the research articles listed in today’s research post.  We’ve been well ahead of this move the entire time and we called this move perfectly using our predictive modeling systems, Fibonacci price modeling systems, and other tools.  Our researchers have the ability to see into the future sometimes without predictive modeling tools.

In fact, we already have an idea of what will happen over the next 3 to 5+ years, but the price is our ultimate tool of choice.  We allow price to dictate what it wants to do, then use our predictive modeling tools to align price movement with our technical and predictive analysis – that is our secret, and you can’t get it anywhere else on the planet.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.

Be sure to ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a Free 1oz Silver Round or Gold Bar and SPECIAL OFFER TODAY ONLY – CLICK HERE

I can tell you that huge moves are about to start unfolding not only in metals, or stocks but globally and some of these supercycles are going to last years. This quick and simple to understand guide on trading with technical analysis will allow you to follow the markets closely and trade with it. Never be caught on the wrong side of the market again and suffer big losses. PDF guide: Technical Trading Mastery

Chris Vermeulen
www.TheTechnicalTraders.com

S&P 500 and GDXJ Trend Signals Posted Today

I have just posted our most current trend charts for the stock market and gold miners. As you know money generally rotates between risk-on (stock market) to risk-off (metals, bonds) so it’s important to know when you should shift your money from one asset class to the next.   These trends and swing trade charts which will update daily on our website are second to none (in my opinion), and they are only getting better with time.

GDXJ GOLD MINERS TEND & SIGNALS – SEPT 30

2019 has been a good year for those buying and holding GDXJ which is up 19% year to date, but with these signals for ur entry and exit points in the precious metals sector we are up over 42% alone just for the precious metals plays alone this year.

S&P 500 INDEX TREND & TRADE SIGNALS – SEPT 30

My ETF trading newsletter (Wealth Building Newsletter) is the best of all worlds in terms of analysis, forecasts, swing trades, and trend signals. Think of this Wealth Building Newsletter as a combination of VantagePoints market price prediction software allowing you to know what to expect today/tomorrow ($10,000+ value), PLUS the power of having trend and trade signals similar to VectorVest premium with real-time alerts ($1500 value). The best part is you get all this delivered each morning in one email, and a short 8 minute video telling you JUST what you need to know to profit from the next market move.   No FluffNo Software to Install or LearnNo More Information Overload – Analysis Paralysis   Get my special service limited time offer for only $62 a month when you join our 2yr subscription plan.

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Chris Vermeulen – Technical Traders Ltd