D Day Was an Important Historical Day & It Might Be Again.
Having discussed in my previous idea the stock market during election years and the fact that a crisis during an election year invariable leads to a change of president & party.
I want to highlight the current trend and the D Day spot it is heading towards.
Here are 8 observations (with numbers marked on the chart):
1. Stocks Bounced off the 2-year resistance line (the uptrend of new all-time highs) 2. This downtrend is heading directly for the November 3rd election date. 3. The election date and the downtrend correspond exactly to the 10-year support line for the S&P500 4. The LST Crash Detector worked well for the majority of the crash from Feb 2000 5. The LST Crash Detector signals the start of the next crash. 6. The market is moving down on heavy volume ( bearish ) 7. The Advance-Decline Ratio is weakening, despite obvious Fed buying 8. RSI confirmed the correction.
The fed cannot bolster the stock market if confidence breaks. My research shows that the Fed own 2.5% of stocks. Up from 1.5%.
Hypothesis: Under 3000 by election day.
So what will D Day be?
Decision Day Democrat Day Disaster Day or (in) Dependence Day