The Fed has Created the Biggest BUBBLE in History and it’s about to Pop
FOR EDUCATION ONLY
The S&P 500 and Nasdaq 100 completed major sell signals on Tuesday, October 26, 2021. They formed 9-count Sequence sell signals at that time. On that same day the averages also formed topping tail candlesticks printing Gravestone Dojis and Shooting Star candle patterns.
In this video I lay out everything you need to know about the coming stock market crash and recession.
Stock market CRASH update on the S&P 500 daily, weekly and monthly charts. The Taper and the rate hikes. Fed Funds Futures hints that the Fed may raise rates a lot sooner than you think. Moreover, Consumer Sentiment is warning that the US will move into recession with `18 months from last August.
This stock market crash update looks at the risks of a possible bear market. Examines things that could create volatility. The market is climbing a wall of worry, here are some issues, 1) geopolitical issues 2) the bond market, 3) Inflation and 4) the virus 5) Fed taper, 6) peak earnings, 7) threat of a government shut down in late Sept., 8) peak earnings. This video looks at the Dow Jones Industrial Average (DJIA) , SP 500 SPX (SPY), Nasdaq 100 NDX (QQQ).
The article entails a detailed technical analysis of the S&P500, including a bearish “triple divergence”.
Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction.
There is positive and negative divergence. Positive divergence indicates a move higher in the price of the asset is possible. Negative divergence signals that a move lower in the asset is possible.
A bearish “triple divergence” denotes the S&P500 is moving higher and three technical indicators are simultaneously moving lower.
The video narrator also discusses “price gaps”. A gap is a price level on a chart where no trading occurred, and gaps can occur in all time frames.
A gap on a daily chart happens when the stock closes at one price but opens the following day at a different price. Why would this happen? This happens because buy or sell orders are placed before the open that cause the price to open higher or lower than the previous day’s close.
Microsoft closes at $26.57. After the close they come out with their earnings report. They report higher than expect earnings that causes excitement among investors. Buy orders come flooding in. The next day Microsoft opens at $27.60. Since there were no trades between $26.57 and $27.60 this will create a gap on the chart.
Traders say a stock is “filling a gap” or a stock has “a gap to fill”. A few days later the Microsoft stock price declined and filled in the price level at which there were previously no trades, “filling the gap”.