Dee_12345

How is this not going to crash?

AMEX:SPY   SPDR S&P 500 ETF TRUST
Simple.

Stimulus and more Quantitative Easing.

But I propose that this will only make things words.

I've taken the peak from January 2018, and posted a Fib line running towards the next peak at October 2018. We'll come back to this shortly.

Now looking at the above time period, we see a pattern form.

Scroll to the next bubble leading up to February 2020. This is the exact same pattern repeating itself. Then look at the next bubble leading up to today. Again, it's the exact same pattern. This is three repetitions of the same pattern.

Each pattern ended with a crash. But here's what's worse. Each pattern is exponentially increasing in both size and scope!

And each crash looks as though it's getting larger and larger!

I stretched the image of each of these these bubbles, and overlayed into one chart picture. All three have almost identical peaks and troughs.

Now, I do believe that we don't crash, simply because of QE and stimulus - But surely this will only exacerbate and prolong the issue, leading to a far larger crash?


By the way,

Fib 1 hit October 2018

Fib 3 hit February 2020.

Fib 5 is due July 2021.


Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.