DOW JONES - Signal That We Haven't Seen Since the Crash of 2008
Dow Jones Index has showed a monthly signal not seen since 2008.
The price action that has currently developed is very similar to the beginning of the 2008 crash. In fact, the next rally (if we get one) can be the final "make or break". See the chart comparison between 2008 and 2022. I'm not a perma-bear nor do I ever like predicting crashes or waiting around for one. However, the technical setup with the current inflation and aggressive FED rate policy can be just what it takes to crush this market.
TECHNICALS:
The monthly histogram has fired negative for the first time since July of 2008 and is also in a volatility squeeze (John Carter...). The squeeze tends to fire in the direction of the primary trend. Yet unless the macro picture changes (i.e. FED reverses course, etc), it appears the squeeze is already beginning to fire SHORT. I'm anticipating another 40% lower from where we are now, that is using the same projection from the crash of 2008.
Now, a lot can change and the macro picture is very different from that of 2008.
A lot of people will buy the next leg up in this BEAR TREND hoping to have nailed the bottom. It will be those buyers who will end up capitulating and puking the market when it catches them off guard.
Word of advice - be very cautious on going "all in" on this next counter rally. The market is in a massive squeeze. (similar theme will apply to other indices)
US30USD
SPX
QQQ
DIA
Stay safe all and God bless.
The price action that has currently developed is very similar to the beginning of the 2008 crash. In fact, the next rally (if we get one) can be the final "make or break". See the chart comparison between 2008 and 2022. I'm not a perma-bear nor do I ever like predicting crashes or waiting around for one. However, the technical setup with the current inflation and aggressive FED rate policy can be just what it takes to crush this market.
TECHNICALS:
The monthly histogram has fired negative for the first time since July of 2008 and is also in a volatility squeeze (John Carter...). The squeeze tends to fire in the direction of the primary trend. Yet unless the macro picture changes (i.e. FED reverses course, etc), it appears the squeeze is already beginning to fire SHORT. I'm anticipating another 40% lower from where we are now, that is using the same projection from the crash of 2008.
Now, a lot can change and the macro picture is very different from that of 2008.
A lot of people will buy the next leg up in this BEAR TREND hoping to have nailed the bottom. It will be those buyers who will end up capitulating and puking the market when it catches them off guard.
Word of advice - be very cautious on going "all in" on this next counter rally. The market is in a massive squeeze. (similar theme will apply to other indices)
US30USD
SPX
QQQ
DIA
Stay safe all and God bless.