Shares are bouncing this morning. However that’s to be anticipated.
Each main collapse follows a transparent sample:
1) The preliminary drop
2) The bounce to check former help.
3) The REAL fireworks.
Shares are at present in section 2… as you possibly can see, they’ve been rallying to “kiss” the 50-day transferring common or DMA (see the crimson circles within the chart under). Nonetheless, they’ve FAILED to reclaim it.
If shares DO NOT reclaim this line proper right here and now, it’s doubtless GAME OVER for the bull market.
The entire state of affairs is much like that of 2008. At the moment shares broke down, then rallied to “kiss” the 50-DMA a number of instances. Once they didn’t reclaim it’s when the REAL fireworks hit.
We just lately printed a Particular Report outlining sure key developments that flash proper earlier than each main crash hits.
It’s known as The right way to Predict a Crash and it illustrates what these triggers are at present signaling for the markets… and whether or not or not the percentages of a crash are low, medium or excessive proper now.
To select up a free copy, swing by