October 02, 2019
The market is now in SERIOUS trouble.
Unless the Fed or someone else steps in and intervenes in a big way, stocks will collapse.
The S&P 500 is at THE trendline that has acted as support throughout 2019. Any time stocks hit this line in the last year, "someone" (the Fed) stepped in to intervene.
Will they do the same now?
If not, stocks will collapse. And I DO MEAN collapse.
The Market Is a Sea of Red...
Yesterday’s drop did a lot of damage to the rally.
Stocks broke down in a big way. As I write this, they've broken their bearish rising wedge (blue lines) and have crashed through support (red line).
This is very bad news.
Throughout all of August and most of early September I warned that stocks would only hold up until roughly the Fed's September meeting (September 17th-18th). Those days formally appears to have marked the recent top.
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 2,600 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.
A Crash is coming... and smart investors are preparing NOW
before it hits.
Chief Market Strategist DHF.
George Town. Cayman Islands.