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Bearish Patterns

Final Post: The Collapse Is Brewing🚨 Final Warning: The Collapse is Brewing 🚨 The market is flashing unmistakable warning signals. If you’re still clinging to the idea of endless upside, it’s time to confront the data. Here are the key reasons why the market is on the brink of a major crash: 1. Record Dumb Money Investment, Consumer Debt, and Reckless Behavior Small traders, often referred to as “dumb money,” are more heavily invested in equities than ever in recorded financial history. Historically, these traders are most bullish at market tops, while smart money—like institutional investors—are quietly exiting. A prime example is Warren Buffett and Berkshire Hathaway. Buffett, widely regarded as one of the greatest investors of all time, has been signaling caution through his actions. Berkshire Hathaway is on track to finish its second straight year as a net seller of stocks, unloading a record $133.2 billion in equities through the first three quarters of 2024. The majority of these sales came from its largest holding, Apple (AAPL), generating over $125 billion in proceeds. Buffett's reluctance to reinvest that capital is a significant red flag. Even more telling, Berkshire has not repurchased any of its own stock this year for the first time in six years, signaling that Buffett believes even Berkshire itself is overvalued. This aligns with his famous adage: “Be fearful when others are greedy, and greedy when others are fearful.” At the same time, households are drowning in record levels of debt. Credit card balances have surged to all-time highs, and auto loan delinquencies are near record levels, signaling that consumers are stretched to the brink. Meanwhile, households have allocated more of their portfolios to equities than ever before, reaching record levels of stock investments as a percentage of total household equity. This dangerous combination of overleveraged consumer spending and peak exposure to equities creates the perfect storm. When the market begins to fall, liquidity issues and forced selling could accelerate the crash dramatically. 2. Elliott Wave Analysis: A Probable Turning Point When Wave 3 is extended, Wave 5 is typically shorter and often mirrors the length of Wave 1. In the chart above, I highlight a potential key target at 6,104.51 on the SPX, where Minor Wave 5 will equal 161.8% of Minor Wave 1. This level represents a probable turning point, as Wave 5 is unlikely to extend much further given the size of Wave 3 and the guideline concerning Wave 3 extensions. Additionally, the Minor Wave 1-3 trendline, shown on the chart, is a critical resistance level and a reliable predictor for pinpointing the end of Wave 5. This trendline suggests that Wave 5 is ending very soon, most likely by the end of the year. 3. Uninverted Yield Curve (After a Record Inversion) Buffetts favorite recession indicator! The yield curve has recently uninverted, a historically flawless predictor of recessions. But this time, it spent a record amount of time inverted, signaling extreme stress in the financial system. There is a strong historical correlation between the length of the inversion and the severity and length of the subsequent recession. With this inversion lasting longer than any in recorded history, the implications for the economy could be catastrophic. Final Thoughts The writing is on the wall. With record dumb money investment, Elliott Wave pattern nearing completion, a recently uninverted yield curve after a record inversion, and record consumer debt, the market is primed for a crash. Banks are sitting on over $500 billion in unrealized losses—and that’s just what we know of. The cracks in the financial system are growing, and in 2025, we should prepare for a 40-50% correction in US equities and banking failures across the globe. Greed and recklessness have reached unsustainable levels. History shows that these excesses are always punished, and this time will be no different. Stay cautious—this is your final warning. There will be no other post.
SP:SPXShort
by BardiniCapital
DXY Is Going Down! Sell! Here is our detailed technical review for DXY. Time Frame: 5h Current Trend: Bearish Sentiment: Overbought (based on 7-period RSI) Forecast: Bearish The price is testing a key resistance 106.196. Taking into consideration the current market trend & overbought RSI, chances will be high to see a bearish movement to the downside at least to 105.500 level. P.S Please, note that an oversold/overbought condition can last for a long time, and therefore being oversold/overbought doesn't mean a price rally will come soon, or at all. Like and subscribe and comment my ideas if you enjoy them!
TVC:DXYShort
by SignalProvider
1
Silver May Face More Weakness After A Corrective RallySilver is making sharp reversal down from recent highs, even breaking a lower trendline support of an ending diagonal which is an important indication for a top in place. As such, we are aware of much lower prices, maybe even back to the start of a diagonal at around 27/28 as drop from 4h time frame has an impulsive bearish structure into wave A/1. But we see some bounce now that can be an A-B-C irregular/expanded flat correction into wave B/2, where subwave (C) can be now in progress. Resistance is then around 31.60-33 area, and from where we will have to be aware of further weakness within wave C or 3.
OANDA:XAGUSDShort
by ew-forecast
US30 Short Idea based on monthly-minute breakdownAfter thorough breakdown i see US30 diverging in the weekly & hourly TF, after that I measured the daily-weekly moving average and concluded that it has finished the average pip movement before usual daily retracements. So after deciding it will be bearish I’m looking for a bullish retracement in the 1min-15 min TF to the 45100 area where I’ll be looking to place my SELLS. TP targets have been set from TP1-TP6 (Make sure to set to break even after TP1 hits if deciding to swing trade). Bulls usually control December so I did mark up the possible bullish scenarios from the 1st 4 TPs. Let’s see if US30 can FEED US !!
UShort
by jcatchinpips