US Markets “Roll Over” On Earnings And Economic Data At Channel Highs

(Click on image to enlarge)

IWM, RUSSELL 2000 ETF, DAILY CHART

This IWM, Russell 2000 ETF, Daily chart highlights an “island Doji top” formation that is setting up as a very unique price formation. When Doji type candles form with a gap above the previous bars, this is often considered an “island top” type of formation. Doji candles represent indecision and uncertainty. They are often found near-critical top and bottom formation. In this current formation, we believe the island top formation is a very clear warning that a major price top is setting up in the Mid-Caps which would also be considered a “new failed price high” formation. Ultimately, the $144.50 level becomes critical support if price falls.

(Click on image to enlarge)

SSO, PROSHARES ULTRA S&P 500 ETF, DAILY CHART

This SSO, ProShares Ultra S&P 500 ETF, Daily chart highlights a similar price range setup. Notice how all of these sectors have rotated into these ranges over the past few months – very similar to what happened in 2015/16 prior to the 2016 elections. We believe the uncertainty related to global trade, global economics and the US political “circus” will continue to put pricing pressure on the US stock market and global markets. We believe the inability to achieve “new price highs” throughout many sectors is a very clear warning that a larger downside price move, a type of price reversion, maybe setting up and we have been trying to warn our followers to be very cautious in taking unnecessary risks at this time while trading.

(Click on image to enlarge)

If our cycle research and predictive modeling systems are correct, we could be setting up for a downside price move that may act as a “true price exploration/reversion event” and potentially target levels that may be below the June 2019 lows.If this move is associated with some external news event or global crisis event, we may see prices fall to levels below the December 2018 low price levels.

View single page >> |

Disclosure: If you want to know where the market is headed each day and week, well in advance then be sure to join my Pre-Market Video Forecasting service which is  more

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.